Can capital losses offset gains on NQOs and restricted stock?

September 21, 2011

Date:   Mon, 29 Dec 2008
From:   Dale


For years, I received some ISOs, NQOs and restricted stock from a publicly-traded company. Last year, our division was sold and I had 90 days to exercise my options. I exercised and sold on the same day within the 90 day period.

I paid some estimated tax on my NQOs and restricted stock, but nothing for the ISO shares. I know I owe additional taxes.

I have some capital losses in my other accounts. Can I offset any of the gains on the NQOs and restricted shares with the losses? I know I can’t for the ISOs.


Best regards,


Date:   9 Jan 2009

Hello Dale,

Probably not. If you sold the shares immediately when you received them, all of your income will be taxed as ordinary wages. Capital losses can only be applied to capital gains, plus $3,000 to other income.

Good luck!

Mike Gray

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

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