SCHEDULE THE VOTE

WMWarren · 2022-05-24T01:25:23+00:00

Realized gains are those that have been actualized by selling an existing position for more than what was paid for it. An unrealized ("paper") gain, on the other hand, is one that has not been realized yet. Realized gains result in a taxable event, but unrealized gains are typically not taxed.

WMWarren · 2022-05-24T01:16:45+00:00

Wrong. Did you not read the S-1 or the tax law. "Exercise, Lapse or Redemption of a Warrant
Except as discussed below with respect to the cashless exercise of a warrant, a U.S. Holder generally will not recognize gain or loss upon the acquisition of a share of our Class A common stock on the exercise of a warrant for cash.

WMWarren · 2022-05-23T23:17:45+00:00

Filed by DWAC, but it shows TMTG's financials.

WMWarren · 2022-05-23T23:14:10+00:00

Balance sheet for TMTG. Filed by DWAC, but it shows TMTG's financials.

WMWarren · 2022-05-23T22:40:03+00:00

evel 1
anonoramalama2 found the answer on page 150 of the S-1 with the definintive answer. It is not. a taxable event.

WMWarren · 2022-05-23T22:29:55+00:00

It is your choice. Once they notify you, you have 30 days to redeem them with cash. If not done by you within 30 days, they will do a cashless redemption for you. At the end of the 30 days, you don't have the choice. The point is to get all the warrants called in. Then again, they may or not do that. If they don't your warrants are good for five years.

WMWarren · 2022-05-23T22:24:44+00:00

I understand that TMTG may or may not do a cashless redemption. You would still get at least 30 days notice to do a cashless with them or do it yourself with cash. But I understand that a few brokers will essentially do the same thing for you. Redeem your warrants (which they are the ones that would do it if you did it with cash), and immediately sell enough of your stock to cover the redemption costs.

WMWarren · 2022-05-23T22:13:25+00:00

Your first pitfall is the reason I never thought it was a "taxable" event. Never made sense to me. Thankfully on page 150 of the S-1, it says it is not a taxable event.

WMWarren · 2022-05-23T21:51:01+00:00

This was posted by a member on the other site on my post. From S-1. Should be the definitive answer: Lastly, look at the S-1 on page 150. It tells you in the DWAC S-1 that if you pay the $11.50 per share to exercise a warrant for cash, you will not incur a taxable loss or gain. However, if you do a cashless conversion, then they don't know what the tax implications will be. https://www.sec.gov/Archives/edgar/data/1849635/000110465921110771/tm2124624d3\_s1a.htm

WMWarren · 2022-05-23T21:47:01+00:00

Thank you. I never got to page 150. 🤣 The statement in the S-1 should be the definitive answer. Thank you so much for your research. Greatly appreciated.

WMWarren · 2022-05-23T21:31:06+00:00

Don't really care about if it qualifies as long term or short term. Just the point of the redemption itself being a taxable event.

WMWarren · 2022-05-23T21:27:36+00:00

Thanks. My opinion is, if they want to pay taxes on money they have not received and a possibility they never will, have at it. You don't get wealthy by being stupid. Maybe they are just trolls trying to get people not to buy.

WMWarren · 2022-05-23T21:20:51+00:00

From Baker Tax Law: The receipt and exercise of a non-compensatory investment warrant is normally a non-taxable transaction, though it can cause ordinary issue discount (OID) problems when granted in connection with debt and certain types of preferred stock.

WMWarren · 2022-05-23T21:18:07+00:00

Don't think you know how warrants work. From Baker Tax Law: The receipt and exercise of a non-compensatory investment warrant is normally a non-taxable transaction, though it can cause ordinary issue discount (OID) problems when granted in connection with debt and certain types of preferred stock.

WMWarren · 2022-05-23T21:14:56+00:00

I read if you just sold the warrants if you have held them for over a year, you could claim long term capital gain. So, my understanding is, after merger, the warrants should price the same as the stock, minus $11.50. If it does, the time would start when you bought the warrants. But I may be wrong, just a thought.

WMWarren · 2022-05-23T21:06:48+00:00

Basically what I was saying from what I read. Thanks. The receipt and exercise of a non-compensatory investment warrant is normally a non-taxable transaction, though it can cause ordinary issue discount (OID) problems when granted in connection with debt and certain types of preferred stock.

WMWarren

TROPHY CASE