You buy warrants just like a regular stock. You can also sell them just like a regular stock and take a loss/gain and pay tax on them under the same rules as a regular stock. However with warrants there will come a time, after the merger between DWAC & TMTG, when they will become exercisable meaning for each W you own you will be able to convert it into one common stock for the price of $11.50.
You need to be aware that whatever gain you make upon exercising that W will be taxed as ordinary income no matter how long you held the W and the company can call to force you to exercise the W within 30 days at any time so you will need to make sure funds are on hand to pay the fee and the ordinary income tax at year end. The gain will be considered the price of common stock upon exercising - price you paid for the W - $11.50. Then the new cost basis of your common stock will be the price of the stock upon exercising. So if you bought a W for $10 and exercise when common stock is $100 you will owe ordinary income tax on 100-10-11.5=$78.5 gain. Again this will be the case even if you own the W longer than 1 year.
Most likely they will force exercise of the W's soon after they become exercisable although they can go for up to 5 years without doing that but that's highly unlikely. At that time you can either sell the W as a regular stock or call up your broker and let them know you want to exercise for $11.50 each. After the merger is successfully completed the price of W's should shoot up much higher and be much closer to the price of common stock, minus $11.50, so you will always be able to just sell them like a regular stock if you don't want to go through the exercise process or lack the funds to do so They are more risky right now because you get nothing back if the deal falls through but will be much more profitable than buying common stock now if everything works out as planned.
You are limited to investing only $6000 per year in the IRA though right? Also would you still be able to exercise the warrants to convert to common stock somehow and it's still tax free? I'm not eligible for a Roth IRA but interested in how it would work.
Profit was always a collateral. DWAC is literally putting money where your mouth is, and supporting those who stand for you. I always though of it as a donation first and an investment second.
Have some that has increased by over 400%. Wifey has some that has increased by over 1300%. Bought way back when it was 10.19 a share! It’s been our best performing stock.
Tech stocks on NASDAQ are falling faster than DWAC. The floor on DWAC was already tested several weeks ago around $33. It's gone up to $55 and back down to $38 since then.
The web version goes live in a couple of weeks. It'll go much higher than $55 at that time.
I'm willing to lose all the money I put into Dwac. I'm holding.
DWAC is gonna acquire twitter mark my words
Marked
And CNN?
You buy warrants just like a regular stock. You can also sell them just like a regular stock and take a loss/gain and pay tax on them under the same rules as a regular stock. However with warrants there will come a time, after the merger between DWAC & TMTG, when they will become exercisable meaning for each W you own you will be able to convert it into one common stock for the price of $11.50.
You need to be aware that whatever gain you make upon exercising that W will be taxed as ordinary income no matter how long you held the W and the company can call to force you to exercise the W within 30 days at any time so you will need to make sure funds are on hand to pay the fee and the ordinary income tax at year end. The gain will be considered the price of common stock upon exercising - price you paid for the W - $11.50. Then the new cost basis of your common stock will be the price of the stock upon exercising. So if you bought a W for $10 and exercise when common stock is $100 you will owe ordinary income tax on 100-10-11.5=$78.5 gain. Again this will be the case even if you own the W longer than 1 year.
Most likely they will force exercise of the W's soon after they become exercisable although they can go for up to 5 years without doing that but that's highly unlikely. At that time you can either sell the W as a regular stock or call up your broker and let them know you want to exercise for $11.50 each. After the merger is successfully completed the price of W's should shoot up much higher and be much closer to the price of common stock, minus $11.50, so you will always be able to just sell them like a regular stock if you don't want to go through the exercise process or lack the funds to do so They are more risky right now because you get nothing back if the deal falls through but will be much more profitable than buying common stock now if everything works out as planned.
Not taxable if through a Roth IRA.
You are limited to investing only $6000 per year in the IRA though right? Also would you still be able to exercise the warrants to convert to common stock somehow and it's still tax free? I'm not eligible for a Roth IRA but interested in how it would work.
Profit was always a collateral. DWAC is literally putting money where your mouth is, and supporting those who stand for you. I always though of it as a donation first and an investment second.
Best time to buy! :)
Holding Dwac, dwacw, Gme and aapl.
aapl?
Apple like phones!
Why hold Apple?
Have some that has increased by over 400%. Wifey has some that has increased by over 1300%. Bought way back when it was 10.19 a share! It’s been our best performing stock.
Live in Houston (hurricanes). Holding the line, piece of cake! WWG1WGA!
Let’s hope the guys selling it will help us in the long run
Hold, will hold forever!
And sell all your gold and silver because it is going down too!!
(They are dumping paper)
I keep loading up on warrants u/#pepecozy
I don't bet my life savings on one flavor of sauce so I'm always comfy.
I’m comfy! 😉
loose or lose?
LOL! good catch. My bad. But obviously when a rabid lib is raging they can't spell correctly what they are saying!!!!
DWAC is just getting started. I'm planning on long term hold.
loose?
I'm going to grab a few more DWACW tomorrow. Hopefully the sale price drops more for me!
BYe Moar!
Tech stocks on NASDAQ are falling faster than DWAC. The floor on DWAC was already tested several weeks ago around $33. It's gone up to $55 and back down to $38 since then.
The web version goes live in a couple of weeks. It'll go much higher than $55 at that time.
I respond better to investment advice that doesn’t have misspelled words. What “looosers”
Soory about that!
It's a sale!
I’m comfy holding my XRP, XLM, Silver and DWAC
Why XRP and XLM?
I just have a feeling itll make it beyond the crash. Im no expert at all, but Im holding. 👍🏻