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Date:   Thu, 02 Jun 2005
From:   Bryan

Have the tax laws changed since your FAQs on non-qualified stock options were answered? Is the excess of the fair market value of the stock over the option price still taxed as additional wages when the options are exercised?

Thanks,
Bryan

Answer

Hello Bryan,

The basic rules are unchanged. Some of the details, including the tax rates, might have changed and more clarifying information has come out over time.

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.