That entails avoiding volatile markets, investing in precious metals, focusing on passive income streams and keeping cash on hand. If you’re worried that tighter times may be ahead, recession-proofing your portfolio makes sense. Tech is a volatile area of the market, especially right now. But what do you do with the money once you receive it? Here are a few ideas: 1. With other tech companies, like Meta, are seeing their stock price drop, getting a premium payout from Twitter is exciting. Now that you know what will happen to your Twitter stock, it’s essential to have a plan once the deal goes through. What Should You Do With the Payout From Twitter Stock? However, if you’ve been holding Twitter for years, you’ll see a smaller tax rate. So, if you bought stock when Elon announced he was buying Twitter in the Spring, you may be seeing a higher tax bill next year. These are taxed at a more favorable rate of 0% – 20% depending on your income. Long-term capital gains are gains you see after selling a stock you’ve held for over a year. Depending on the rest of your total income, you’ll be taxed at a rate of 10% – 37%. Short-term capital gains are taxed as income, which can affect which tax bracket you fall in. If you held the Twitter stock for less than a year, you’ll be subject to short-term capital gains tax. That’s because the extra cash premium applied could you open you up to significant capital gains tax. With the money you made on the sale, you’ll be taxed at a rate depending on how long you held the stock.

You could end up with a big tax bill come April with the privatization of Twitter. What Are the Tax Implications of Twitter Going Private for You?

The whole process could take a few weeks for funds to show up in your account. Transitioning a company from public to private takes time and you may want to have the money from this stock in your account so you can use it as soon as possible. This price is also a substantial premium, meaning you’ll receive significantly more for your Twitter stock than you would have on the open market. This was a rate agreed upon by a 98% margin at a shareholder meeting in September. 8, 2022, Twitter got a record of all remaining shareholders who will be paid out of their shares at a rate of $54.20 per share.

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