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I'm an accredited investor who should be selling their first private placement investment for a gain. I assumed this gain would be taxed as short term capital gains but the carried interest talk currently on the TV news has me wondering.

Can any professional tax person on this site tell me if this is correct? Are there any ways you might suggest to minimize tax expense?

Some specifics: It was $50k in convertible debt invested in a bulletin board company which I bought a month ago. If converted to shares and sold at todays prices it would theoretically sell for $480k. The company has filed the S-1 and is in the process of registering the stock for sale with the SEC. I think the stock is overpriced and plan to sell. If the stock prices stays anywhere near where it currently is, it is very unlikely that I would hold the convertible debt or shares for more than a year in order to achieve long term capital gains. There is currently no options or ability to short the shares in order to lock in current prices and wait for taxes to become long term. I don't expect any, as the stock is thinly traded. I do own an LLC and can probably produce sizeable losses in that LLC this year however I did not originally buy the convertible debt in the name of the LLC. I would certainly consider transferring it into the LLC if that would help.
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