| Equity Swap, Capital Gains! Please provide insight |
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snp500
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 28 Nov 2004
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| Equity Swap, Capital Gains! Please provide insight |
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I have a buddy who has $1m in capital gains by investing in a hot public REIT (real estate investment trusts). The position itself is worth $3m.
How can we reduce the tax liability? These are the only positions in his portfolio. The stock is Vornado (VNO) and the position has been held for more than a year. The maximum capital gains tax at the moment is 15%. Any way to reduce this to, say, < 10%? Any creative ways to do this?
On another thought, how exactly do equity swaps work? How is money made or loss in such a transaction? An example would be very helpful. The thought here is that we can still maintain rights to the shares but we would 'swap' cash-flow - supposidely a tax-free event.
Thanks!
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Sun Nov 28, 2004 1:52 am |
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