Fannie Mae-No Politics (FNMA)

[GZGZGZ]

tax consequences


I'm not bad-mouthing preferred holders since I own both share classes

however, there may be tax advantages for holding preferreds: when the time comes for conversion into common shares, word is (and I don't know for a fact) that it's a non-tax event.

however, if common shares are sold in a regular brokerage account, capital gains taxes await.

Some may say the profit gains in common shares may make that a moot point.

idk

for most here the capital gains rate will be 15% (single filers) for shares held over one year

short term capital gains rate is taxed like regular income ... so, it depends on how much is sold & the amount of the gain

https://www.nerdwallet.com/blog/taxes/capital-gains-tax-rates/