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Topic History of: stock options
Max. showing the last posts - (Last post first)
Author Message
10Post With the stk market in the tank, most STK OP are worthless (out of the money). I wanted to share this article with this thread!

STK OP are like flushing your wages into the toilet. I'd rather have the cash!..
http://www.dailymarkets.com/options/2008/11/22/stock-options-here-we-go-again/
OnTheGo I would take it up front. Generally even though a new stock will go down after a short while, its been my experience that in the start the stock tends to start to sky rocket. Its a different story if you have to hold the options for a while before selling, then you have to keep your ears open to what the buzz is on the options.
great1 this thread is pretty well responded to, but I wanted to answer Mickey"s question as to how they are reported. Stock options are reported on w-2 as part of wages and compensation. The employee should get a cost basis statement from the employer showing what he paid for them. You must retain this information. Its the only proof of your cost. Especially if you hold on to the stock for some years.

And, many stock options restrict when the owner can sell the stock.
LK311 The lure of stock options is attractive. The problem is that holding too much of a company stock is that in a volatile market could cause a large loss from over allocation of funds into one stock. I've been seeing a lot of it lately with clients holding National City, Rite Aid and Ford.
LK311 So does this advice mean he is now reporting income on the accural method as opposed to cash basis? And can you change like that from year to year?
Micky B My client is going to make the election to include them in income now because the value is depressed. So, hopefully they dont depreciate further. Thanks for the help.

Question: are the stock options reported on a 1099 or W-2? Does the employee pay capital gains on them?
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