"orangetrader" <orangetrader[at]hotmail.com> writes:

- quote -

Didn't you already ask this? Anyways, if you really believe
the "benefit" of the transaction is worth nothing, then why
are you performing the transaction? That should tell you
something.

- quote -

Yes, you do.

- quote -

Yes, it will. It'll be included in Box 1 of your W-2 and
is treated just like cash wages.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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If I exercise a non-qualified stock option for a company
that is not yet publicly traded. The FMV is $5 and the
option price is $2. Assume I have 1000 shares which I have
to pay $2000 when I exercise, there is also a $3000 of
"benefit" from this transaction even though I can't sell it
and it is really worth nothing until if and when it goes
public. But I have to pay taxes for it regardless.

What I wonder is how will this $3000 be reflected? Will it
show up as additional "wages" on W2? Where will it show up?
It is not part of "captial gains" right?

Thanks in advance,

O

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