Should I exercise non-qualified options to take a tax loss?
September 19, 2011
Date: Thu, 14 Oct 2010
I have 2,000 shares of fully-vested NQSOs with a grant price of $33.05. The company’s stock is currently selling for $13.17.
I would like to exercise the options to take a tax loss, which would help with our tax liability next year. May we do this?
Date: 15 Oct 2010
Maybe, but it would be crazy. You shouldn’t intentionally enter a transaction for a tax loss.
Instead of buying the shares using your stock options for $33.05, you can simply buy the same shares on the stock market for $13.17.