I have been buying LEAPS in tax-deferred accounts for several years and have done very well with them. Typically I roll them as they approach expiration or simply sell them and reinvest in LEAPS of other names.
Feb 2020 I bought an ATM call for GOOGL 01/21/2022 1420.00. Needless to say this has had a massive gain (627%). Unlike my normal practice I bought it in a taxable brokerage account.
I know there is a LT Cap Gain if I sell or roll the option. What I don't know is what happens if I exercise the option and take possession of 100 GOOGL? Do I still owe cap gains taxes or will I owe them when I eventually sell the GOOGL shares?
I don't know if this is appropriate for the sub. Apologies if it's not.
Submitted November 18, 2021 at 09:04AM by ApostrophePosse https://ift.tt/3oJevK3
