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Subject Author Date
stock options svizag 04-15-2006
Posted by svizag on April 15, 2006, 2:59 am
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 I received 'restricted stock options' last year and I had to
exercise them (buy) them at a price of 0.01c per share. My
Stock options Tax Summary statement (internal form) shows
that I have gain of around $24,000 (Fair Market Value was
around $4) -

I haven't sold any of these shares yet (they are not vested
yet!) Should I be paying taxes on this gain?

Appreciate your help

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<< The foregoing is intended for educational purposes only >>
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Posted by Rich Carreiro on April 16, 2006, 2:09 am
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 svizag@gmail.com writes:

> I received 'restricted stock options' last year and I had to
> exercise them (buy) them at a price of 0.01c per share. My
> Stock options Tax Summary statement (internal form) shows
> that I have gain of around $24,000 (Fair Market Value was
> around $4) -
>
> I haven't sold any of these shares yet (they are not vested
> yet!) Should I be paying taxes on this gain?

Are these ISOs or NQOs? Did you file a Section 83(b)
election on the stock you received upon exercising the
options?

--
Rich Carreiro rlcarr@animato.arlington.ma.us

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by svizag on April 17, 2006, 10:59 pm
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thanks for the response. these are shown as 'RES' as in
restricted stock options.
I don't think they are ISO or NQO
I haven't filed a section 83(b) - should I?

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Rich Carreiro on April 19, 2006, 12:18 am
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svizag@gmail.com writes:

> thanks for the response. these are shown as 'RES' as in
> restricted stock options.
> I don't think they are ISO or NQO

Well, they have to be one or the other. All employee stock
options are either ISOs or NQOs.

> I haven't filed a section 83(b) - should I?

Maybe, maybe not. Depends on strike price, FMV at time of
exercise, and your general current and future tax situation.
Also, if it's been more than 30 days since you exercised the
options, it's moot, since an 83(b) election has to be filed
within 30 days of exercise if I recall correctly.

--
Rich Carreiro rlcarr@animato.arlington.ma.us

<< ======================================================= >>
<< The foregoing is intended for educational purposes only >>
<< and does NOT constitute legal OR professional advice. >>
<< >>
<< The Charter and the Guidelines for submitting >>
<< messages to this newsgroup are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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