I got reverse merger-ed out of a stock and got paid for it yesterday. But then I bought it back today in my IRA. This was not done for tax purposes. I think the stock has a little more upside, I didn't like being forced out and when I got the chance to buyback at slightly less than I sold for, I took it.
My question is, yesterdays sale was 100% gain. All profit as my cost basis was covered by prior distributions. On my ledger, I wrote down 100% profit, that is, a zero cost basis.
Does buying it back in my IRA within 30 days FORCE me to NOT take the gain this year in my regular account and differ it until I eventually resell the bought back shares ?
Or does that only apply when one sells at a loss ?
It really makes no difference to me. It would actually help to put it off another year or two but my intent was to hopefully capture a little more upside over the next year or two. Taxes didn't really factor into my decision. The stock is a liquidation arbitrage play. Im hoping for the bulk of my money back in about 13 months with more 12-14 months later which should result in a decent total return from today's buy price.
Let me know what you think !
Thanks
My question is, yesterdays sale was 100% gain. All profit as my cost basis was covered by prior distributions. On my ledger, I wrote down 100% profit, that is, a zero cost basis.
Does buying it back in my IRA within 30 days FORCE me to NOT take the gain this year in my regular account and differ it until I eventually resell the bought back shares ?
Or does that only apply when one sells at a loss ?
It really makes no difference to me. It would actually help to put it off another year or two but my intent was to hopefully capture a little more upside over the next year or two. Taxes didn't really factor into my decision. The stock is a liquidation arbitrage play. Im hoping for the bulk of my money back in about 13 months with more 12-14 months later which should result in a decent total return from today's buy price.
Let me know what you think !
Thanks