The choice to exercise your employee stock options can be a difficult one, regardless of whether you have incentive stock options or non-qualified stock options. Difficult because of the potential complexities of exercise and technical jargon required in the process. Other issues may be …
[Read more...] about 6 Strategies to Exercise Your Employee Stock Options
When it’s time to exercise your employer-provided stock options, you generally have one of two options: a cash exercise or a cashless exercise. You may choose a cash exercise in the hope of achieving preferential long-term capital gains treatment on further appreciation of the stock. In addition, …
[Read more...] about Exploring the Details of A Cash Exercise of Stock Options
When the time comes to exercise non-qualified stock options, the question of whether to perform a cash exercise or a cashless exercise is a common one. In many cases, option holders default into a cashless exercise—and for good reason. Among other things, a cashless exercise may be an easy option …
[Read more...] about The Math Behind a Cashless Exercise of Non-Qualified Stock Options
On the surface, the tax rules associated with non-qualified stock options are relatively straightforward. Upon receipt of non-qualified stock options, no taxes are due. Furthermore, non qualified stock options are not taxable until you exercise the shares. This “exercise control” allows the …
[Read more...] about Exploring Tax Rules for Non-Qualified Stock Options
Non-qualified stock options are unique in that they retain tax characteristics similar to restricted stock and employee control similar to incentive stock. One might say that they fall right in the middle of these two. From a tax standpoint, gains are subject to ordinary income tax rates. In …
[Read more...] about The Basics of Non-Qualified Stock Options
