Still have to take the difference between straight tax and capital gains taxes. If you were convinced that this stock is going to continue to appreciate and decided to hold it for a year, what would the difference be between the two tax tables? If you had bought 500,000 shares at a penny sold them today for .20 cents.. that is a gain of $95,000. Straight tax on that is $34,200 versus holding it for a year and paying capital gains taxes of $14,250?
Now what if you were convinced that this stock was going to appreciate later this year to say $5.00 per share? You held for a year then paid your capital gains tax... with a large number of shares this requires more of a thought process than just a temporary gain today.
That is if you truly believe this is a stock that is not your typical penny stock.
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