Ask Experts Questions for FREE Help !
Ask
    butterz's Avatar
    butterz Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 13, 2012, 08:45 AM
    How should I handle tax on my company stock options
    I have 3,455 shares of my company stock options that I can exercise for an approximate profit of $39,000. I want to use a portion of this for debt, a portion for vacation and put the rest into savings. What's the best way to handle this to keep taxes as low as possible?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 13, 2012, 09:12 AM
    The exercise of stock options is typically treated as compensation, which means the company withholds the required income and FICA (Social Security and Medicare) taxes. This being the case, there is no specific tax savings strategy; the entire process is essentially OUT of your hands.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

The company stock is selling for 20 per share the company had total earnings of 40000 [ 1 Answers ]

Problem 18-21 Stock dividend and its effect LO4 Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows: Common stock (2,000,000 shares...

Tax pid in US under Employee Stock Options Scheme (ESOP) [ 2 Answers ]

I just sold few shares granted to me under ESOP scheme of US based company and I am based out of India. I understand the holding requirements and arising FBT if the holding requirements are not met. However, not sure how to claim the refund of capital gain tax withhold in US under DTAA agreement...

Tax on exercised stock options [ 1 Answers ]

I had employee Incentive Stock Options (ISO) in a Startup company and I exercised them in April, 2007. The exercise price was $0.01 per share. The grant Date is Sept, 2004. Since the company is not publicly Traded, I don't know the price per share at the time When I exercised my options. I...

Stock options taxes [ 1 Answers ]

Hi: I am Peruvian national transferred to USA for working. I started to work on January 17th and next day I exercised and sold my stock options. At that time the broker retained like 25% of my capital gains for taxes. Is that correct ? How the IRS will calculate my taxes. Thanks, Jorge

View more questions Search