Do I categorize my NQSO sale as an exercise and sale?

May 14, 2004

Subject:   Question
Date:   Wed, 14 Apr 2004
From:   Kenny

Michael, I had to exercise three different non-qualified stock options in June, 2003. I received the options in 1998, 1999 and 2000. I also cashed them in since it was the last day in my 90-day grace period after the break up. Do I categorize this as an exercise and sale or just a sale?



Date:   Mon, 03 May 2004

Hello Kenny,

If you didn’t receive any stock (including any document showing a sale of stock), you just have a sale. Otherwise, you have an exercise and sale.

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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