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Subject:   Question
Date:   Wed, 14 Apr 2004
From:   Kenny

Michael, I had to exercise three different non-qualified stock options in June, 2003. I received the options in 1998, 1999 and 2000. I also cashed them in since it was the last day in my 90-day grace period after the break up. Do I categorize this as an exercise and sale or just a sale?

Thanks,
Kenny

Answer

Date:   Mon, 03 May 2004

Hello Kenny,

If you didn't receive any stock (including any document showing a sale of stock), you just have a sale. Otherwise, you have an exercise and sale.

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.