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Tax question on convertible preferred stock


Tax question on convertible preferred stock

Old 01-10-2017, 08:18 AM
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Default Tax question on convertible preferred stock

My accountant is out of town.

I have some preferred stock which I can convert to the common. I have held the preffered for more than two years. If I convert to common and sell within a year would I have to pay short term gains? Ot because I have held the preferred for a long time do I pay long term?
joe.giuliano is offline  
Old 01-10-2017, 09:09 AM
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I would think you will receive the common stock when you convert ,so if sold less than a year it will be short.
but you need a professional to tell you for sure
99yam40 is offline  
Old 01-10-2017, 10:28 AM
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Don't have computer.access but generally the conversion itself is not a taxable event and the basis as well as holding period.carries over to the common.
BACKTOTHESEA is offline  

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