I cruised for free!

[sailandcruise]

I just returned from the Summit cruise from Cape Liberty in Bayonne, NJ to San Juan, Puerto Rico.

 

To qualify for the Shareholder Benefit -- $100 of On Board Credit for this cruise -- I purchased 100 shares of RCL stock at $21.57 per share on September 30. The stock closed Friday at $30.40 per share, so I made a profit of about $870 (after commission), which covered the cost of my cabin, on-board expenses (gratuities, drinks, laundry), shore expenses in Bermuda and St. Thomas, and travel to Bayonne and back from San Juan.

 

If I sell the stock now, I will have gotten a completely free cruise. :D

[BILL-WI]

I just returned from the Summit cruise from Cape Liberty in Bayonne, NJ to San Juan, Puerto Rico.

 

To qualify for the Shareholder Benefit -- $100 of On Board Credit for this cruise -- I purchased 100 shares of RCL stock at $21.57 per share on September 30. The stock closed Friday at $30.40 per share, so I made a profit of about $870 (after commission), which covered the cost of my cabin, on-board expenses (gratuities, drinks, laundry), shore expenses in Bermuda and St. Thomas, and travel to Bayonne and back from San Juan.

 

If I sell the stock now, I will have gotten a completely free cruise. :D

 

That is a BIG "IF". Are you going to sell the stock?:confused::confused:

 

BILL

[royalcruz]

sell sell sell!!!

[Keith1010]

yes that is an if. You don't profit nor loss until you sell. Don't forget capital gains tax.

 

Keith

[wvufan]

We bought 100 shares at about $6, used the credit for 3 cruises ($650) and sold at around $43 a share. Every now and then, one gets the bear ;).

 

Hapy Sails to you

 

OOOEEE :D:D Bob and Phyl

[NYcruzzer]

yes that is an if. You don't profit nor loss until you sell. Don't forget capital gains tax.

 

Keith

 

I'm no CPA but if the stock is sold in less than a years time wouldn't it be ordinary income ? That tax rate is certainly higher than Capital Gains.

[Gonzo70]

I'm no CPA but if the stock is sold in less than a years time wouldn't it be ordinary income ? That tax rate is certainly higher than Capital Gains.

 

There are short term capital gains and long term capital gains (short term gains involving a profit on a stock that was held for less than a year). So although it is correct to refer to them as capital gains, short term capital gains are taxed as though they were ordinary income, so your net short term capital gains are added to your taxable income.