DWACW is a warrant, which is like a voucher that can be exercised into an actual share after the DWAC merger. The incentive is that the warrant is cheaper. Right now it's around $27 while DWAC shares are around $84, and the exercise fee is $11 per warrant. So after exercising the warrant, you're paying $38 for an $84 stock. The warrant price moves up and down with the stock price. The catch (in the US at least) is that you'd be paying income tax on the earnings instead of capital gains tax, which is much higher. So if the tax laws in your country aren't favorable, there may not be much incentive.
Taxes are both a scam and, legally speaking, voluntary. If you decide to voluntarily give your money to the Fed again next year, that's on you.
I for one won't be paying a single red cent. I will simply refuse to pay them anything, If they come after me, I will do everything in my power to send the IRS to the Hell from whence it was sired.
All you need to do is a little bit of (ridiculous amount of) research to arm yourself against them. The strings have been cut. They have no more power. They never had legal power, but now they don't even have coercion power. The IRS is toast.
It may be considered compensatory because it's like an option. Many of the conversations online about DWACW center on the income tax penalty. I haven't seen this disputed yet.
DWAC is the stock, DWACW are warrants which give you the right to buy stock at a cheaper price. You'll need the money to do that though. I've seen a lot of people recommending Warrants since they're cheaper to get more of.
Each warrant (DWACW) entitles you to be able to purchase a share for $11.50 after the merger (DWAC to TMTG)
Currently DWACW is $28, and if you pay another $11.50 later, then it comes to $39.50 which is a lot better deal than buying a share now, which is currently $85.
There's some risk in buying warrants because the merger isn't 100% certain (though we kinda know it is) and there's the income tax penalty. I still recommend speaking to a tax professional who understands laws around income from foreign investment.
If you want to buy both, DWACU is a share bundled with half a warrant. It's $99 right now.
I'm going all in on DWAC. I'll reach 100 shares tomorrow, and I bought a two year leap option. After that I'll start buying DWACW warrants.
im new to investing in US stonks. whats the difference between DWAC and DWACW?
DWACW is a warrant, which is like a voucher that can be exercised into an actual share after the DWAC merger. The incentive is that the warrant is cheaper. Right now it's around $27 while DWAC shares are around $84, and the exercise fee is $11 per warrant. So after exercising the warrant, you're paying $38 for an $84 stock. The warrant price moves up and down with the stock price. The catch (in the US at least) is that you'd be paying income tax on the earnings instead of capital gains tax, which is much higher. So if the tax laws in your country aren't favorable, there may not be much incentive.
Taxes are both a scam and, legally speaking, voluntary. If you decide to voluntarily give your money to the Fed again next year, that's on you.
I for one won't be paying a single red cent. I will simply refuse to pay them anything, If they come after me, I will do everything in my power to send the IRS to the Hell from whence it was sired.
All you need to do is a little bit of (ridiculous amount of) research to arm yourself against them. The strings have been cut. They have no more power. They never had legal power, but now they don't even have coercion power. The IRS is toast.
Good reading here https://losthorizons.com/
Kek teach me.
Everything I read is that it’s only considered income if it was awarded as compensation.
https://www.mbakertaxlaw.com/warrants/
That's a good site.
It may be considered compensatory because it's like an option. Many of the conversations online about DWACW center on the income tax penalty. I haven't seen this disputed yet.
Long term capital gains taxes are less than income tax I thought?
Correct. Which is why you wouldn't want it taxed as income.
What if you use a self direct ira/401k to do the transactions?
Probably a brilliant idea. Talk to a tax professional, but I think you've identified the intended strategy.
DWAC is the stock, DWACW are warrants which give you the right to buy stock at a cheaper price. You'll need the money to do that though. I've seen a lot of people recommending Warrants since they're cheaper to get more of.
Each warrant (DWACW) entitles you to be able to purchase a share for $11.50 after the merger (DWAC to TMTG)
Currently DWACW is $28, and if you pay another $11.50 later, then it comes to $39.50 which is a lot better deal than buying a share now, which is currently $85.
so basically there is no reason to buy DWAC and everyone should be buying DWACW
There's some risk in buying warrants because the merger isn't 100% certain (though we kinda know it is) and there's the income tax penalty. I still recommend speaking to a tax professional who understands laws around income from foreign investment.
If you want to buy both, DWACU is a share bundled with half a warrant. It's $99 right now.