Reinvesting the cash payout from startup stocks [can CG tax be avoided?]

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gmatt
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Joined: Wed Sep 12, 2018 9:58 am

Reinvesting the cash payout from startup stocks [can CG tax be avoided?]

Post by gmatt » Wed Sep 12, 2018 10:00 am

Hello,
I worked for a startup for four years. During my tenure there I exercised the stock options that were granted to me (I paid the taxes payable and stock exercise price to the company).
Recently, the company got acquired and the stocks were paid out in cash. Is there any option for me to do any reinvestment in stocks or something else to avoid the capital gains tax that I will have to pay on this stock payout?

Thanks

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FiveK
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Joined: Sun Mar 16, 2014 2:43 pm

Re: Reinvesting the cash payout from startup stocks [can CG tax be avoided?]

Post by FiveK » Wed Sep 12, 2018 2:30 pm

Take offsetting capital losses, if you are in a position to do so.

Otherwise, enjoy the windfall!

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David Jay
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Location: Michigan

Re: Reinvesting the cash payout from startup stocks [can CG tax be avoided?]

Post by David Jay » Wed Sep 12, 2018 4:46 pm

gmatt wrote:
Wed Sep 12, 2018 10:00 am
Is there any option for me to do any reinvestment in stocks or something else to avoid the capital gains tax that I will have to pay on this stock payout?
Nope.

As FiveK says, you can offset against capital losses if you have any losers that you can sell (probably not a lot of those after a 10 year bull market), but you can't avoid the capital gains.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

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