This could apply to several situations, but for me, I own stock, ESPP stock, RSUs, and options in a public company that is being bought by a private investment company.
When this goes through, that stock and the options will be converted in to $X per share (for the options, $X per share minus the exercise price). Some of the shares have been held more than 2 years, but a lot of it has not. The options have not even been exercised.
I worry that most of this will be treated as short term capital gains.
How will this be treated (based on stock held by different time periods)?
What can I do before the LBO is finalized to mitigate the tax burden?
Is there anything that can be done after the LBO is finalized?
My thoughts- I will donate some stock to charity (I think it needs to be long term capitol gains type) I don't think I can convert it to a different format in one transaction and avoid triggering tax implications... Maybe there is a way...
Anyway, please help me understand what I might be facing.