Subject: Non-qualified options that are under water
Date: Thu, 20 Nov 2000
From: David

Hi,

Is there any tax advantage/disadvantage to exercising non-qualified options that are under water?

Regards,

David

Answer

Date: 4 Dec 2000

Hello Dave,

There is no advantage, tax or otherwise, in buying stock for more than its fair market value.

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”.