Refinement of per-lot selection to consider factors in addition to adj basis

[hickeng]

There are two other factors to consider during lot selection:

1. if the lot is ESPP, there's an ordinary income part
2. if the RSU is short term or long term gain

Planning to add:

• [x] a tweak to allow expression of a hold-to date, to consider the changing tax rate of long term vs short term for RSU and qualified vs non-qualified for ESPP.
• [x] modify solver to use a composite basis for ESPPs where the ordinary income part is used to reduce the basis for purpose of comparison (will have the effect of making the larger absolute bargain elements less appealing to sell)
• [x] modify the solver to consider tax impact when sorting and not just raw gain - not sure how to approach this.
  • simplest way of determining the gain for some future date is likely to have the tweak alter the effective transaction date for the merger, but that may be at odds with adding #4
• [ ] force lots with fractions assigned to be shares

[hickeng]

New thought - if I instead of selecting for cash based on lowest pre-merger basis, I can instead select for stock based on highest future basis. The future basis already has the ordinary income baked into it, and we're attempting to maximizedeferred tax so using the future value is legit.

[hickeng]

The ordinary income part was noise for the shares that get selected for lots as it's massively outweighed by the actual basis.

Another thing to consider is construction of a synthetic basis considering the changing tax liability over time for STG, LTG, and qualified/disqualified. It's most academic for this merger but is interesting.

This could be done by reducing the basis by the amortized reduction in tax between two points in time. The mechanism to experiment with sale dates is already there, so this would likely be a walk through the outputs to generate an intermediate dataset.