Recommend Our Site to Your Friends!

Print This Page

Subject:   Excercising stock options
Date:   Sun, 2 Nov 2003
From:   Marty

Dear Mike:

I plan to retire at the end of this year and have some non qualified stock options that I haven't exercised yet. Is there any advantage to exercising and holding the stock versus exercising and selling them?

Thanks,
Marty

Answer

Date:   28 May 2004

Hello Marty,

There is no tax advantage in holding the stock. When you keep the stock, you are in the same position as if you had sold them and bought them back.

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.