A Guide to Employee Stock Options and Tax Reporting Forms

I've got some options that I'm looking to exercise and am trying to figure the best way to go about it. I always thought that exercising options and then waiting for long-term capital gains was the way to go - but the math I'm doing doesn't quite add up. Can someone point out what I'm missing?

And let's say I'm very bullish on the company in the next year.

After selling I repurchase stock and end up with 5, shares. I decide to sell now at long term rates:.

It seems that I end up with more money in Scenario B which I didn't expect. Sure I'm paying more taxes, but if I've got more cash shouldn't I be happy?

Are my calculations correct or am I missing something?

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Non-Qualified Stock Options - TurboTax Tax Tips & Videos

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Selling employee stock options now and waiting for Long Term Capital Gains or selling later.

I decide to sell free forex signal indicator at long term rates: In A why are you subtracting the cost when deciding how much to invest in the stock?

You never egypt stock market reuters incurred that cost, right? It's just your basis for tax reporting, since presumably you already paid taxes when you were originally awarded the options.

Separately, be sure you're using the correct capital gains rate. I definitely incur the cost of the option when I convert it to a stock. And no, I don't pay tax on the option until I exercise it and it becomes a stock.

Hmm, it might help us and maybe you'll even discover the answer yourself along the way to rewrite all the calculations in much more detail.

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