What are some tips to avoid paying heavy tax on the stock buy back?
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Thanks Putho. Very helpful. I checked my basis and it is higher than $104 on account of the prior ESPP settlements above $104 and RSUs being granted at above $104. Accordingly, I have a big loss arising from the CTXS sale that I will likely carry forward into next year to hopefully offset any future gains. Now my next move is to invest in Treasury bills yielding 4% over one to two years. Hopefully by the. The market recovers. Best of luck!
If you have stock other than Citrix and that stock has incurred heavy losses as a result of the market crash, sell those positions so that your realized losses on those positions will offset any gain you have from the gains you anticipate realizing from the Citrix merger. However, do take a look at the basis in your Citrix stock before you do this as personally my basis was much higher than the $104/share and as a result I actually ended up realizing a loss as opposed to a taxable gain. So check your brokerage account before you do the strategy above.