The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retire Early CampFIRE

URL:  http://boards.fool.com/foolishtomtom-if-you-exercise-stock-options-while-11966504.aspx

Subject:  Re: retire early study Date:  2/10/2000  10:20 PM
Author:  eugenecowan Number:  3628 of 734572

Foolishtomtom: if you exercise stock options while a resident of CA, you will be taxed by CA. The exercise of stock options is a recognition event treating the excess of the fair market value of the underlying stock over the amount paid for the stock (the "spread") as compensation income. Because the "spread" is compensation income, it is likely that CA will nail you even if you exercise after moving, since the compensation income will be "sourced" in CA, where you will formerly employed. If your options are incentive stock options, the results are different.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us