Can worthless NQSOs be used for a tax benefit?

February 16, 2004

Subject:Subject: taxation NQSO
Date:   Mon, 26 Jan 2004
From:  EJB


Is there any scenario where worthless NQSOs could be used for some tax benefit where a loss can be claimed?



Date:   6 May 2008

Hello Cortney,

Since no income is reported when the options are received, they have no tax basis and no loss can be claimed for them when they expire worthless.

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”.

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