Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: v1nc1tr1x One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 124982  
Subject: Re: selling stock options then buying house... Date: 9/28/2000 5:40 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0

I'll echo the earlier posts -- there's nothing except the IRA early withdrawal penalty that's affected by a first-time home purchase.

But there's another issue: you don't say what kind of option you are selling. (Also, are you sure you're selling options, or might you be exercising the options and then immediately selling the stock??? The two can have different tax results.) If these are employee stock options (either "ISO" or "NQO" -- incentive stock options or nonqualified options, for the acronym-challenged ;) ) which you received from your employer, you may be taxed at ordinary income rates (up to 39.6%) on the gain from selling. That could leave you with much less for the house. :(

You might want to check out the Employee Stock Option board here at TMF. There are lots of threads discussing the differences between option types, the tax consequences (including Alternative Minimum Tax in some circumstances), etc.

Fool on!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | 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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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.