New answers tagged

1

For the future, you would need to dispose of (sell or simply gift) half the shares to your wife between the option being exercised and the shares being sold. But perhaps you don't need to do a broker-driven sale half the shares to your wife. Perhaps you could simply gift half the shares in trust to your wife (i.e. you would hold half the shares on trust for ...


2

They are not arguing that stock options are better than cash. "The reason that they give is that, in the future, your compensation will have much more equity and early in your career stock options are limited compared to the future." I see nothing in that statement that claims stock options are a good thing relative to cash. It is a statement of ...


0

Employee stock options give workers an opportunity to own a slice of the company. They allow them to purchase stock at a set price within a specified time frame, typically for less than the current market price. If a company goes public, the benefit can be life changing for early-stage employees and executives.


4

Firstly, you need to distinguish between stock and stock options. Just giving out stock has no special benefits. But stock options have big benefits for the company: "buy now pay later": they cost almost nothing until the options vest, which is usually some years after they are delivered to the employee. incentive payment: you generally lose ...


0

If you are compensated with stock, then dividends are often taxed at a lower rate than salary income, but otherwise you are hoping that the value of the stock will increase over time. And if you are compensated with options, you are not entitled to dividends as you don't own the stock itself, but again you would be hoping that when the options vest you could ...


0

Exercising options is not a taxable event in the US. The strike will be the cost basis of the stock that you buy, so the profit when you sell the stock will be price - strike, and that will be the profit on which you are taxed. However, it's almost always cheaper to sell the option (which will be taxable) and buy the stock at market price. The option should ...


-1

Ask yourself a couple questions - Do you have enough capital to exercise those options? Do you want to hold the stock past the option expiration date? As long as the options are ITM (in the money) at expiration, you have the capital to exercise, and you want to hold long term then keep your options. You could make more money off theta if the stock is/goes ...


0

I believe that the long-term capital gains holding periods are different. For an early-exercised NQSO, it would be treated as long-term capital gains if you hold it for 1 year after exercise, but for an early-exercised ISO, it would only be treated as long-term capital gains if you hold it for 1 year after vesting. Also, I believe early-exercised ISOs have ...


0

According to https://www.qsbsexpert.com/83b-elections-and-qsbs/, all your shares will qualify for QSBS as long as you meet all the other conditions: According to the Code of Federal Regulations and its subchapter on income tax, “Under section 83(f), the holding period of transferred property to which section 83(a) applies shall begin just after such ...


0

Based on my limited knowledge about stock options (an non-existent knowledge of any associated accounting norms), here's how I would do it. The short answer is probably yes, it is all this moot and you should only count the number of shares and do accounting when you exercise and sell (see §1 and §2 below in case you are not sure how that would work). If you ...


Top 50 recent answers are included