Can I exercise non-qualified stock options for short term capital gains?
October 10, 2014
Subject: Question about your article
Date: 02 Dec 2013
What happens if a nonqualified option is exercised and converted to stock; the stock is held for five days and then sold. Would the income from the sale of the stock be a short term capital gain, which can then be offset using short-term capital losses from other stock sales?
Would the ordinary income from the exercise of the nonqualified option still be reported on Form W-2 for the year of exercise?
Date: 06 Dec 2013
I’m sorry, but holding the stock doesn’t convert the gain from exercising a nonqualified stock option to a short-term capital gain. Ordinary income will still be reported on Form W-2.
See the books mentioned at Employee Stock Option Secrets or the Special Report, Nonqualified Stock Options – Executive Tax and Financial Planning Strategies at http://www.stockoptionadvisors.com/isofaq/non-q_stock/.
Also, consider attending our in person or online seminars about Tax Planning for Employee Stock Options on January 16 or 17, 2014, mentioned earlier in this newsletter.