Fannie Mae-No Politics (FNMA)

[JOoa0ky]

For $5million par value, taxed as ordinary income short term gains will land you with roughly 51% tax rate in NYC. You are liable for about 2.5M in taxes. The 10x gains has now become 5x overnight.

If you're able to hold on until long term gains, it drops down to 33.53% which is close to a 17% difference which equates to a saving of 850k in taxes. You are liable for 1.676M in taxes.

Now if you don't sell it all at once and piecemeal it ~500k per year, the tax rate drops down to ~25%.

Blindly selling will give back most of your gains.