Can I exercise the options and take a net loss for a tax deduction? If not, do I just let the options expire? Does that have any tax implications I should be aware of?
2006-11-09 06:57:48 · 5 answers · asked by Swanhart 2 in Business & Finance ➔ Investing
I have no idea why anyone would want to buy stock so they can take a loss. Would you like to explain that to me?
There are no tax consequences for letting worthless options expire.
2006-11-09 07:12:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
In your Schedule D, file a loss. Now you can't buy back the stock until after a certain amount of time. So if you go in and out of the same stock and lose money, you might not be able to claim a loss.
2006-11-09 09:41:51 · answer #2 · answered by gregory_dittman 7 · 0⤊ 0⤋
if the exercise price is above the current market price then they are worthless. if the exercise price is below the current market price and you sell the shares, you will owe tax on the difference between the exercise price and the market price. For example,
45.00 exercise price 50 market price = $5 gain
that will be taxed if you sell (at your marginal bracket rate). Otherwise, hold shares and pay no tax
2006-11-09 12:05:30 · answer #3 · answered by xperiencedinvestor 2 · 0⤊ 0⤋
on your time table D, record a loss. you are able to now't purchase back the inventory till after a undeniable quantity of time. So in case you go out and in of a similar inventory and lose funds, you're able to desire to not be waiting to declare a loss.
2016-10-21 13:23:46 · answer #4 · answered by ? 4 · 0⤊ 0⤋
not that familiar withoptions but if they expire you lose everything.
take the loss now.
2006-11-09 08:25:31 · answer #5 · answered by Anonymous · 0⤊ 0⤋