Stock Options - Same Day Sales

This handout provides guidance on the taxation of exercising stock options. Tax reporting of these transactions is covered in details.

HIGHLIGHTS: 

  1. Qualified stock options.

  2. Nonqualified stock options.

  3. Taxation of a same-day sale.

  4. Form 8949, Sales and Other Dispositions of Capital Assets.

  5. Bargain element.


CLIENTS WHO MAY BENEFIT:

  1. Employees of corporations that offer stock options.

  2. Taxpayers who have exercised stock options during the tax year.

Individual Income TaxClare FazackerleyTax, Stock Options, Qualified Stock Options, Form 8949, Capital Assets