large stock position with low cost basis. is that mentioned in taxes or unique circumstances (or both)?
taxes for sure. CFAI doesnt mention it in unique in one of their solutions, so…
i usually mention it in both -unique 100% for sure, and tax i just mention there could be consequences if the stock is liquidated.
i’m just going through my notes and schweser says “large amounts of a stock” as an example of a unique circumstance. I guess this raises another question, can you be penalized for righting too much even if it is applicable. one more example: client is selling business for $10m. Should you mention recommend legal consult under legal and recommend consult with tax attorney under taxes? that would probably be a wise thing to do (at least in real life). if you do and they aren’t looking for it would you lose points? this whole essay IPS thing has me worried.
low cost basis is tax low cost basis where you are an executive or on the board or whatever = unique