Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: mathetes Big red star, 1000 posts Old School Fool Motley Fool One Everlasting Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123538  
Subject: Re: Exercise of Non-Qualified Stock Options Date: 10/19/1999 5:17 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I exercised some non-qualified stock options that were given to me by a former employer this month. One batch I received in 1996, the other in 1997. I know that this is going to affect my Federal Income Tax returns and, in fact, I think it will bump me into another tax bracket. Is there a formula, schedule, or some other easy way that will help me make an educated guess as to whether or not I'll actually (gulp) *owe* taxes in April?

beallan -- swallow hard, and take a seat.

Ready? The difference between the market value on the day you exercised and the price you had to pay is taxable income. Period. With Non-qualified options that's the end of the story. If you are guessing that it might put you into another tax bracket, there's little question as to whether you'll owe taxes; just a question as to how much. Had you still been working for this employer, they would (should) have taken a check from you and rolled the taxes into your W-2 at the end of the year. Since that's apparently no longer the case, you'll be responsible for the tax.

The best on-line resource of educating yourself on questions like this is The author there, a tax attorney, also speaks and writes in normal English. Well worth a visit.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2015!
Fistula Foundation: A World of Good!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.