Can capital losses offset gains on NQOs and restricted stock?
September 21, 2011
Date: Mon, 29 Dec 2008
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.
Date: 9 Jan 2009
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.