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#3
03-08-2006, 03:03 AM
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 Re: How to calculate stock option loss? No.Spam wrote: - quote - > I exercised a stock option 5 years ago, and here are the
Well, this time common sense prevails.> details: > My grant price is $10/share, I exercised 400 shares when the > stock was trading at $60. > Option cost: $4000; > Actual value when exercise: $24000; > Gain reported on W-2 for that year: $20000 > If I sold the stock this year for $3/share, how should I > report this on the my tax returns? You paid $4000, you also paid the tax on $20000 worth of phantom gain. Your total basis is $24,000. You sold for $3 x 400 = $1200, so you have a loss of $22,800 ouch. I hope you have some stocks you sold for a gain to wipe this out, otherwise you can take $3000/yr till you use it up. A historic footnote; back in the networking boom, there were individuals who excercised options, had phantom gains (taxable) in the millions, and by year end, the stocks crashed, and they had capital losses to last them $3000/yr for the rest of their lives. The gains were ordinary income and they had huge tax bill to pay. JOE << ================================================== ===== > << 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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#2
03-08-2006, 02:44 AM
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| Re: How to calculate stock option loss? No.Spam wrote: - quote - > I exercised a stock option 5 years ago, and here are the > details: > My grant price is $10/share, I exercised 400 shares when the > stock was trading at $60. > Option cost: $4000; > Actual value when exercise: $24000; > Gain reported on W-2 for that year: $20000 > If I sold the stock this year for $3/share, how should I > report this on the my tax returns? Your basis in the stock is $24,000. You have a long-term capital loss of $18,800 on the sale. Umm (blush) -- make that $22,800! (Someday I'll learn to subtract ...) Katie in San Diego << ================================================== ===== > << 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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#1
03-08-2006, 02:06 AM
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| Re: How to calculate stock option loss? "No.Spam" <lcchan.temp[at]gmail.com> wrote: - quote - > I exercised a stock option 5 years ago, and here are the
Your basis is $24,000 and your proceeds $1,200> details: > My grant price is $10/share, I exercised 400 shares when the > stock was trading at $60. > Option cost: $4000; > Actual value when exercise: $24000; > Gain reported on W-2 for that year: $20000 > If I sold the stock this year for $3/share, how should I > report this on the my tax returns? -- Phil Marti Clarksburg, MD << ================================================== ===== > << 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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03-08-2006, 02:06 AM
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| Re: How to calculate stock option loss? "No.Spam" <lcchan.temp[at]gmail.com> writes: - quote - > I exercised a stock option 5 years ago, and here are the
Can't be answered until you tell us if it was an ISO or a> details: > My grant price is $10/share, I exercised 400 shares when the > stock was trading at $60. > Option cost: $4000; > Actual value when exercise: $24000; > Gain reported on W-2 for that year: $20000 > If I sold the stock this year for $3/share, how should I > report this on the my tax returns? non-qualified option. -- Rich Carreiro rlcarr[at]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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#-1
03-06-2006, 02:31 AM
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| How to calculate stock option loss? I exercised a stock option 5 years ago, and here are the details: My grant price is $10/share, I exercised 400 shares when the stock was trading at $60. Option cost: $4000; Actual value when exercise: $24000; Gain reported on W-2 for that year: $20000 If I sold the stock this year for $3/share, how should I report this on the my tax returns? Thanks! << ================================================== ===== > << 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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