Can an individual offset gain from a same-day non-qualified stock exercise with short term capital loss?
February 2, 1999
My question is:
Can an individual offset gain from a same-day NQ exercise with short term capital loss? Since this gain shows up in my W-2 may I somehow list it on my schedule D?
Since the gain from a same-day sale of stock acquired with a non-qualified employee stock option is ordinary income, it is properly reported by an employee as wages, not capital gains. Only up to $3,000 of net capital losses may be deducted from other income, including the income from non-qualified options.
Since you sold the stock, at least you should have the cash to pay the tax. Your employer should have withheld some taxes from your sale proceeds.