If I exercise share options can the capital gain be used to start a new business & thus avoid cap gains tax?

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If I exercise share options can the capital gain be used to start a new business & thus avoid cap gains tax?

2007-03-27 05:44:13 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States

4 answers

Good idea but sorry, you'll have to pay the capital gains tax.

If it's a long term sale (held more than 1 year), the maximum tax rate on that sale is only 15% on your federal return.

Good luck on the start of your new business!

2007-03-27 06:17:15 · answer #1 · answered by Lee, CPA - TurboTax employee 2 · 0⤊ 0⤋

No, you have to pay the capital gains tax - then you can do whatever you want with the money that's left over.

2007-03-27 19:54:36 · answer #2 · answered by Judy 7 · 0⤊ 0⤋

You can use it for anything you wish, but nothing you do with it is going to avoid the CG taxes.

2007-03-27 13:27:21 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋

No.

2007-03-27 13:07:48 · answer #4 · answered by CarVolunteer 6 · 0⤊ 0⤋