Am trying to get some tax advice for my son (who asked for it) re: his
exercise of a stock option.
Several years ago as an incentive to join his present company, he was
given the option to puchase several hundred shares of common stock at
what was then about $29/share. He now wishes to exercise the option
and immediately sell the stock. Stock is now about $60/share.
Since he never paid for the stock in the first place, does he pay tax
on the entire $60, or on the $31 difference.
I know the capital gains rates changed this year. At what rate will
this gain be taxed?
Anything else of significance?
- posted 12 years ago