AVZO options, page-579

In addition to voting rights, and being eligible for offers to holders, you are correct re liquidity - if you have a change of heart and want to get out it would be easier, especially if you hold a lot.

Maybe there are some scenarios where tax wise someone might prefer to lock in the profit this year rather than next, even if that means missing out on the CGT discount. I came up with 2 examples.

A) If you made $36,000 profit, and the oppies were held in a family trust and your elderly mum and dad earning no income were beneficiaries then you might want to convert the oppies so that the full gain made on the oppies is attributed to mum and dad tax free in the tax year ending June 2018.
Then you work out what to do with your new profit on the heads in the next year.

B) Another example might be if you had a relevant loss kicking around that you may as well use. You need to clarify if it is considered an income loss or capital loss and your trader status (or not) to see what can be offset. I am a trader, so last year I offset the income gain on some shares with an existing income loss from a rental property. My accountant advised that income losses can be offset by either income gains or capital gains (but not the other way round, capital losses can only be offset by capital gains).

I'm not an accountant, so please double check everything that I say. I do get tax books for christmas as I am very interested, so I value any extra ideas/information that other posters can add.

CC