How are enmployee benefit warrants taxed?

October 31, 2005

Date:   Thu, 18 Aug 2005
From:   Edwin


I joined an investment banking firm where part of our compensation includes warrants. How are these taxed?

Much thanks,



Date:   Wed, 12 Oct 2005

Hello Edwin,

If the warrants can be traded on a public market, they are taxable based on the market price.

If the warrants are personal and can’t be traded, they are taxed as non-qualified stock options. See our special report, Executive Tax Planning for Non-Qualified Stock Options.

Good luck!

Mike Gray

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