Tweet
I have a couple of tax questions.
My wife works at a company that granted 200 options at a price of around $22 when it first went public. Currently it is at 44 and we would like to exercise the options and then keep the 200 shares for a long term holding. When I talked to the company SmithBarney that handles this stuff they said when you exercise the options you get hit with a short term capital gains tax. It is calculated by the difference in exercise date price and grant price. My first question is, is this correct?
Next he said they had to withhold 28%. I asked that he not and I would take care of it with my accountant at the end of the year. He said he could not do that.
So my next question is do the big brokerage houses make rules like this or was he just being unhelpful.
Lastly lets say I exercised my options, paid my taxes and held. Would 44 be considered the price I own the 200 shares of stock then?
I just wanted a second opinion on these two questions, becasue he was so short and rude about my questions.
I enjoy the site alot of good info and people.
My wife works at a company that granted 200 options at a price of around $22 when it first went public. Currently it is at 44 and we would like to exercise the options and then keep the 200 shares for a long term holding. When I talked to the company SmithBarney that handles this stuff they said when you exercise the options you get hit with a short term capital gains tax. It is calculated by the difference in exercise date price and grant price. My first question is, is this correct?
Next he said they had to withhold 28%. I asked that he not and I would take care of it with my accountant at the end of the year. He said he could not do that.
So my next question is do the big brokerage houses make rules like this or was he just being unhelpful.
Lastly lets say I exercised my options, paid my taxes and held. Would 44 be considered the price I own the 200 shares of stock then?
I just wanted a second opinion on these two questions, becasue he was so short and rude about my questions.
I enjoy the site alot of good info and people.
Comment