InterDigital Inc (IDCC)

[Desert dweller]

Wash sales only apply to losses, the tax man will always take your money. Before doing anything, make sure you don't pay larger capital gains taxes than you would ordinary income taxes just so you get the lower rate.

What I mean is if you made $5 per option but you made $15 per share on your stock sale, you would probably be better off just paying the ordinary income taxes on the option trade. The other VERY BIG thing to consider is how the AMT (alternative minimum tax) will impact you. More and more taxpayers are falling into the AMT trap and the preferential rate on capital gains can trigger the AMT tax at 26% or 28%, after some more Michelob Ultra's I can't remember what the rate is on individuals.

Do yourself a favor and have a qualified tax professional do a projection for you to see of the AMT will impact your decision. Considering it is the summer, you should be able to see most CPA's on a moments notice. It is much better to schedule an appointment now instead of on April 14th of next year.