What Are the Taxes on Selling IPO Stock?
Despite the tax consequences of selling IPO, or initial public offering, stock, there is generally a pretty good yield for insiders selling their stock. Consult an attorney or tax accountant about selling IPO stock with advice from a financial adviser in this free video on investments.
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Are you doing an IPO? Hi this is Roger Groh at Groh Asset Management. The question for today is what kind of tax are you going to pay on an IPO or Initial Public Offering? Really the question is whether your gains, assuming that there are gains, are short term or long term. If you've been an investor in stock in that company for more than a year, chances are your gains will be regarded as long term. If you've been investor for less than a year, probably your gains will be regarded as short term. All sorts of other things to consider, if you have options and you're flipping options in order to do an IPO, your original basis for the options will serve as your basis in the stock. And count as part of the capital gain period. If you own them for more than a year, it's probably long term. If you only own them for a week or two, it's probably short term. You're going to need to contact your own attorney or tax accountant in order to review the specifics and determine exactly what your tax liability is. In either case, doing an IPO is usually a pretty good thing for insiders selling their stock. I'm Roger Groh at Groh Asset Management and thank you very much for spending time with me.