FYI...Borrowing against an asset is not a taxable event. (look at it as "cashing out" on a refinance of your home, you dont pay taxes until there is a sale).
So pulling cash out via "margin" does not create a tax liability. The subsequent sale of equity you are holding, either through your selling it, your broker selling it (via margin call) or take-over cash buyout does create that taxable event on which you incur a liability.
Better Scenario (IMHO) is a stock swap in buy-out which does not cause a taxable event...but puts you into a company which can grow, have long term stability and pay a dividend...then sell off pieces on own timeframe. (That is why keep saying..I will not sell DSNY as DSNY but will via AAPL, GOOGLE, NFLX, etc)
Best Scenario...purchase and hold all your stock in a Roth IRA (if in early 60s) ...never pay income taxes on the gains, (be they capital or short term) and just clip tax free coupons whenever you need $ (via sale of stock).
Then again...if you are 35 that would be terribly frustrating...watching a "nest egg" for approx. 30 years ... not lots of fun...
