Is a loss of stock from non-qualified options deductible?
September 26, 2011
Date: Mon, 29 Mar 2010
I recently left a start-up and have 60 days to exercise my non-qualified stock options. I understand that when purchasing I have no capital gains and do not need to pay taxes. But, if the company folds, then I have paid for stock that is worthless. Is the loss tax deductible?
For example, if I buy 10,000 shares at 10¢ per share, the shares will cost $1,000. Would a loss be tax deductible?
Date: 7 Apr 2010
No. You had no tax basis or cost for the options because you didn’t have taxable income when your received them.