stock options

I received 'restricted stock options' last year and I had to exercise them (buy) them at a price of 0.01c per share. My Stock options Tax Summary statement (internal form) shows that I have gain of around $24,000 (Fair Market Value was around $4) - I haven't sold any of these shares yet (they are not vested yet!) Should I be paying taxes on this gain? Appreciate your help

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Reply to
svizag
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Are these ISOs or NQOs? Did you file a Section 83(b) election on the stock you received upon exercising the options?

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us

Reply to
Rich Carreiro

thanks for the response. these are shown as 'RES' as in restricted stock options. I don't think they are ISO or NQO I haven't filed a section 83(b) - should I?

Reply to
svizag

Well, they have to be one or the other. All employee stock options are either ISOs or NQOs.

Maybe, maybe not. Depends on strike price, FMV at time of exercise, and your general current and future tax situation. Also, if it's been more than 30 days since you exercised the options, it's moot, since an 83(b) election has to be filed within 30 days of exercise if I recall correctly.

-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us

Reply to
Rich Carreiro

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