Stock Market/Investing/Day Trading/Speculative Trading Thread

[Faux Sean Callahan]

I actually know this. He doesn’t take a salary, so his stocks are considered income instead of cap gains.

That is what my guess was, but honestly don't have the confidence in my knowledge of the tax code as it isn't my sandbox.

 

[Toe]

AMD up almost 11% today after they announce a deal to power Facebook/Meta's servers.

Chipmaker AMD just scored a big deal with Meta

AMD lands a high-profile deal with the company formerly known as Facebook.

finance.yahoo.com

 

[LoudHogRider]

Eh you seem trustworthy...

I've never lied to you or anyone else on this board. And at one point in my career, I literal Lee had a role that let me say, "I'm from corporate and I'm here to help". I loved doing that FWIW just to see the looks on people's faces. And this thread is all about investing. We should be providing advice, insight and perspective on things that help each other reach higher financial goals. This isn't a zero-sum game - plenty of $$$ out there to be had for all of us, IMO.

 

[LoudHogRider]

AMD up almost 11% today after they announce a deal to power Facebook/Meta's servers.

Chipmaker AMD just scored a big deal with Meta

AMD lands a high-profile deal with the company formerly known as Facebook.

finance.yahoo.com

I've got 500 shares. Hip, hip, hooray!

 

[Jim14510]

FYI, Musk has a 28 billion dollar taxable gain.
CNBC said he has a 15 billion dollar tax bill.

Apparently has some options he has not executed on, but expire in 2022.

@Jim14510 why is this treated like income instead of cap gains?

With options you have 2 options. If you don't make the election they are treated as compensation when you exercise them. You can make an 83(a) election (think that's the number). If you make this election they would be ordinary income when they are granted. That election is advantageous if the stock price is on the rise.

 

[Faux Sean Callahan]

With options you have 2 options. If you don't make the election they are treated as compensation when you exercise them. You can make an 83(a) election (think that's the number). If you make this election they would be ordinary income when they are granted. That election is advantageous if the stock price is on the rise.

So if you don't make an election.... you pay ordinary income from the value they are the day you execute them and then they become a normal NQ stock.

If you 83(a) them you essentially realize them the day they are granted. I imagine the reason he didn't do this is he didn't have the capital to pay the taxes them.

 

[Jim14510]

So if you don't make an election.... you pay ordinary income from the value they are the day you execute them and then they become a normal NQ stock.

If you 83(a) them you essentially realize them the day they are granted. I imagine the reason he didn't do this is he didn't have the capital to pay the taxes them.

Correct. Would guess not having the capital wasn't really the issue. He was just didn't want to take the tax hit sooner. Depends when he was granted the shares.

 

[Faux Sean Callahan]

Correct. Would guess not having the capital wasn't really the issue. He was just didn't want to take the tax hit sooner. Depends when he was granted the shares.

I mean I know Musk had some really tough times that is why I said that.

 

[Faux Sean Callahan]

 

[LoudHogRider]

That's a swing and a miss.

 

[Faux Sean Callahan]

Son of a

That's a swing and a miss.

I'm looking for an entry point....

 

[KidsSeeGhosts]

So if you don't make an election.... you pay ordinary income from the value they are the day you execute them and then they become a normal NQ stock.

If you 83(a) them you essentially realize them the day they are granted. I imagine the reason he didn't do this is he didn't have the capital to pay the taxes them.

I would put it at a 0% chance that Musk filed 83(b) elections. You see that with founder or more early stage companies. With pubcos, it's always going to be sale to cover.

 

[God is a Husker]

 

[God is a Husker]

 

[God is a Husker]

 

[Faux Sean Callahan]

I know this is a bit boring talking about bonds, but figured I would bring this up....

Anybody ever read about series I bonds from the US treasury?

I bonds — TreasuryDirect

treasurydirect.gov

Paying about 7.12% right now

 

[LoudHogRider]

I know this is a bit boring talking about bonds, but figured I would bring this up....

Anybody ever read about series I bonds from the US treasury?

I bonds — TreasuryDirect

treasurydirect.gov

Paying about 7.12% right now

View attachment 5564

That's actually pretty incredible. Backed by the full faith of the US Government's Federal Reserve Banks (Rothchilds ... Rockerfellers ... Payseurs), so we're good to go, amIright?

 

[Faux Sean Callahan]

That's actually pretty incredible. Backed by the full faith of the US Government's Federal Reserve Banks (Rothchilds ... Rockerfellers ... Payseurs), so we're good to go, amIright?

This falls into the "too good to be true" bucket for me. What is the catch here?

Fuck for a fixed instrument that is incredible.

 

[Red Dog]

I know this is a bit boring talking about bonds, but figured I would bring this up....

Anybody ever read about series I bonds from the US treasury?

I bonds — TreasuryDirect

treasurydirect.gov

Paying about 7.12% right now

View attachment 5564

You might be able to pace inflation with that bad boy

 

[Faux Sean Callahan]

What is owning 10k in I Bonds going to do for you?

Make you about $700 🤣

No I am thinking about it for my extended emergency fund.