Options Trading Tutorial

Tax question related to exercising non-qualified stock options? If I have 1,000 shares of non-qualified stock options with exercise price at $15. When I exercised them the price of the stock was at $35. I did not sell right away and hold on to them for a few months. Unfortunately the stock keeps falling and I finally sold at $25. Is it true that I have to pay tax on gain base on the stock price when I first exercised the options (i.e. $35) and not the actual sales price (i.e. $25)?

What does it mean for a stock option to be non-qualified? I have 30 NSO (non-qualified) stock options with my company, and I have no idea what any of this means. Please explain as though you are talking to an eleven-year-old.

Very difficult Non Qualified stock option Problem? If I have non-qualified stock options and I exercised them 1 year later and sold them 3 years later. What portions would be ordinary income and capital gain?

I've exercised non qualified Stock Options. How do I file on my 2006 income taxes? What forms or which lines on 1040 do these show on?

I purchased both ISO and Non Qualified stock options and held for over a year before selling a portion.? (no disqualifying disposition) My broker combined the total quantity of shares into a single account; therefore there is no record of which type is sold. I sold a protion of the shares and now I do not know which one I am responsible for reporting on my tax return. Iso shares are treated different than non qual shares. Does anyone know what shares I need to report on my tax return? I was caught up in the AMT on my 2006 return because of the purchase and holding of the ISO shares in 2005.

Very hard Non-qualified stock question? for non-qualified stock options, what are the rules regarding what portion is ordinary income and what portion of it is capital gain portion. If possible, include references where it may be stated.

Can I offset stock option exercise gains with losses? I exercised some non qualified stock options this year and the gains will be reported as W2 income complete with withholding. Can I take short term losses on other stocks to offset these gains? Or am I limited to $3000 write off?

California unemployment compensation during weeks I exercised NQ stock options from previous employer? I was laid off of my job several months ago at a technology company and have been collecting California unemployment compensation since then. The Non-qualified Stock Options I received at my company expired 90 days after my layoff. I recently sold (aka cashless exercise) my remaining options right before the 90-day expiration window. I know that the spread between my options' grant price and the market price is treated as taxable income. But is it also treated as "work" from EDD's perspective for purposes of determining eligibility for unemployment benefits? In other words, can I still collect unemployment benefits for the week that I exercised my options?

help!!!..INCOME TAX..employee stock options program..how to? my mother had an employee stock option plan at her old job...she started buying stocks in 2005 and held them until 2009 when she sold $3000 worth of stock...she did her income tax return and forgot to report them so she did an amendement..she only earned around $17000 that year when the amendment was done..the tax preparer added the $3000 for the stocks my mom had sold and told my mom that on those $3000 she owed $2900 in taxes!! she is 54 yrs old, held the stocks for almost 5 yrs..all the tax preparer asked was how long she held them..ive been reading up on them and i read and also from calling IRS that she should have been asked if they were qualified or non qualified stocks...does anyone know anything about this?? it just seems like being taxed $2900 for $3000 is too much...why would anyone ever buy stocks then! should i just take her w2 form and stock form she got for income tax and have someone else do them.?????

How to decide when to sell off my stocks? Hi. I am an employee of Applied Materials Inc, listed as AMAT in NASDAQ. My company provides me the following stock plans/grants: 1. ESPP (Employee Stock Purchase Plan) 2. NQSO (Non-Qualified Stock Option) 3. RSU (Restricted Stock Units) In ESPP, we get shares at 15% discount. We can purchase shares twice a year(On last day of feb & august). The max amount one is allowed to invest in this scheme is 10% of my basic. In NQSO, we have an expiry period of 5 years. Shares would vest over a period of 3 years. (33% would vest at the end of 1 year, 33% next year and so on) Here, we get shares at a fixed rate of $8.6 In RSU, we get a grant of 40 shares every year. It does not require any investment. Another factor is i earn in Rupees (INR), but stock is traded in US Dollars($). So Exchange Rate of that date of transaction is applicable. Now, the trouble i am facing is how to decide when to sell how many shares? Considering that i have purchased stocks in all the schemes over past 2 years, and dollar has appreciated from 40 to 50 Rs. roughly, and some of the shares i own have been granted to me for free. how to decide when to sell how many shares?

Selling Employee Stock options is CONFUSING!! Please help!? I was granted 300 shares of company stock 5 years ago at $10. My company's stock is now at $25. If I sell everything I was granted today, how much tax should I expect to pay? Some notes: These are ISO shares (whatever that means). I will make around $50k this year in normal earnings (I never ever ever sell stocks or bonds or whatever else there is - I just have a job and I work like a normal person). I get confused when people start talking about non-qualifying whatever and disqualified shares and W2's and 1099's and Schedule D's and Publications of various numbers and whether these are long-term or short-term. I don't know any of this. I just know that I have 300 shares available at $10 and now our stock is at $25. All I want to know is how much tax should I expect to pay so that I can make sure to keep that money to the side when I make the sale. Can anyone help??? This seems like a straightforward question but no one seems to be able to tell me a straightforward answer.

I got a mail from British Petroleum company ,is this fake or real mail?The mail will be given in next part.? Yahoo!My Yahoo!MailGroupsMail HelpYahoo! SearchSearch:Welcome, barkhasizzler [Sign Out, My Account]Mail Home Mail Contacts Calendar Notepad What's New? Mobile Mail हिन्दी Options Search Mail Folders[Add a new folder - Edit folders] Inbox (671) Drafts (2) Sent Spam (101) [Empty all the messages from the Spam folder] Trash [Empty all the messages from the Trash folder] Search Shortcuts My Photos My Attachments Go to Previous message | Go to Next message | Back to MessagesMark as Unread | Print ReplyReply All Move... Flag this messageBritish Petroleum Company Interview Invitation Letter(Ref No: 01/007/HRD/BPPLC)Monday, 6 October, 2008 3:13 PM From: "Mr. Tony Edward" <tony_edwardbp8798@yahoo.co.uk>Add sender to Contacts To: barkhasizzler@yahoo.co.inMessage contains attachmentsBritish Petroleum Company Interview Invitation Letter.doc (294KB) BRITISH PETROLEUM COMPANY UK OFFICE OF THE CHIEF RECRUIT OFFICER 1st ,St. James Square London,SW1Y 4PD 6th of October 2008Ref No: 01/007/HRD/BPPLCAttention:Barkha Jain It will be an excellent opportunity to join one of the world biggest Oil and Gas company that is focused on growth and sharing that success with employees. The Company has approximately 875 employees spread between offices in United Kingdom . It is now seeking to strengthen its team with the addition of challenging team of new employee. On behalf of the entire recruit team, I will like to formally notify you on your appointment for an interview with our great company. Invitation have been sent to the British Embassy Home Office here in London for notification, so that all your immigrations documents needed for the interview will be processed by the official traveling Agency attached to BP by the British Embassy.. This is also to avoid Delay/problem of not been able to process the immigration documents for the interview before the actual date. Benefit will be paid to qualified applicant for favorable at the end of the interview.Recolation allowance, children education allowance, six (6) salaries upfront, maximum of four (4) members will be granted UK immigration papers. Full benefit details will be given to qualified applicants after the interview. Take Home Salary Bases: A base salary in the range £6K-£19K Monthly (GBP), dependent on experience, plus attractive Stock Grant (from day one), Target Bonus (circa 20% at present) and other Oil Company benefits. This take home salary exclude all tax fee payable by all non citizen of Britain working around United Kingdom. Accommodation: Accommodation will be provided for all newly employed staff of BP, this apartment will be able to accommodate staff and family for the time duration working for BP.Apartment will be changed for staff upon promotion in position. Family Education: Education entitlement will be given to staff before resumption of new office with our company.Full summary of the entire package will be couriered to qualified applicant before resumption of duty. The Immigration document will be processed within a short period of time two(2) weeks, so applicants are expect to make arrangement, so the immigration documents reaches your hand before the arrival date. You are requested to send the following details to the official traveling agencg(Alpha Travel Agency).1.Full Name 2.Ref No 3.Marital Status 4.Passport No 5.Date of Birth/Gender 6.Full Contact Address/Mob Tel No 7.Nationality 8.Traveling Purpose You are required to pay the sum of £720 to our official traveling agency (Alpha Travel Agency) as the 33% charge.BP has already sent its 67% to Alpha Travel Agency at the time of file your invitation. British petroleum Company will re-imburse all applicants on their arrival to London for the interview, please be informed that BP will only re-imburse applicant will proof of payment. Therefore applicants are advice to keep safe their payment receipt of the 33% and also endeavor to come with it while coming for the interview. British Petroleum has in the past incurred 100% of our applicant travel expenses, on arrival of some of the applicant to UK ; we don't see them to pick up at the Air-Port. That means some applicant use our job opportunity come over to Uk,without showing up for the interview, which was the reason while the immigration documents were been proceeded for the applicant by BP.Due to this BP Recruit Officers had to work more on our recruitment policy. Alpha Travel Agency will only submit all your immigrations details to the British Embassy Home office after you most have effected the 33%(£720) Charge. You have to follow all instruction given by the Visa Processing officer's your immigration document can be processed and delivered to your resident before the arrival dateof applicants. Do update this office

Legitimate Breeder Vs BYB and Puppy Mill? It seems that many people are being confused, and possibly taken advantage of due to a lack of clarity on this issue. I'm not a breeder, I do remedial behaviour work with power breed dogs, and obedience trial, and I've been a dog owner for forty plus years. I've purchased dogs, and rescued dogs, I've owned mutts, and pedigree stock. So it could be argued that I'm not biased as a breeder and have some experience to define these terms and provide a few guidelines to help people understand the differences. A legitimate breeder is breeding Confirmation Champion Stock which is fully health checked. A legitimate breeder can provide three generations of genealogy to a client. A legitimate breeder sells their best stock to other legitimate breeders, and all the other puppies are sold to qualified applicants with a 'non-breeding' clause. A legitimate breeder is selling registered puppies. ByB's and Mills are breeding dogs that are not breed stock, they may be showing a client the parents papers, and saying something about "we don't believe it's worth while to register our pet dogs", look carefully at the papers, because dogs can be registered as 'Pet Stock", but the Kennel club will not allow puppies from these dogs to be registered. That's a sure give away. "We just love this breed, but don't believe in show dogs," that's a sure give away. Pet stores are not selling legitimate breeder dogs. A breeder that is 'specializing' in several breeds, think about it, what does specializing mean? Not a legitimate breeder. A puppy should come with a contract, usually specifying that the dog must be fixed. That if the owner for some reason can not keep the dog, the breeder will take the dog back, and has first option in all such cases. Contracts vary, and may contain a considerable list of promises as to the life the puppy will have. Obviously legitimate breeders are not cross-breeding. How well the dogs are cared for and loved has nothing to do with this question, it is assumed that all responsible dog owners are doing that, ByB does not mean bad home necessarily. Legitimate breeders are participating in the Breed Kennel club, the local Kennel Club, and the National Kennel club, goes hand in hand with Confirmation showing. Legitimate breeders will not be letting you come and view and handle new born puppies, they will not allow anyone near those puppies until after first shots, for what should be pretty obvious reasons. If you are getting a puppy under eight weeks old, you didn't get it from a legitimate breeder. Those are the key points, but I'm sure the community can add more in the way of 'Warning Signs'... What are the Warning Signs that people new to the dog world that want a legitimate pedigree dog should watching out for, aside from what I've listed? Hello Try'n Again... I agree, most breeders can supply longer genealogies, that's just a minimum guideline that I will accept. Point taken on the club, I should amend that to participating in Kennel club activity rather than being so specific. Yeah poppy, that one really rings bells, because typically that breeder will use the term "specializing in...fourteen different breeds" I agree completely. Hello bw... the primary difference in your previous question is one of degree. A ByB might have one to three or four brood bitxhs, a puppy mill could have dozens, even scores. Both are essentially doing the same time, both tend to think of dog breeding as a 'for profit' enterprise. Ones a corner store, the other is Wallmart. akitagrl... Good points, thank you, and thank you for the clarification on Conformation... *S* ...good thing I admitted from the start that breeding is not my thing. fathom01 ...I know little about horses, other than their bigger than my dogs, and more likely to bite me. *S* ...but I was surprised by your comment, I guess I assumed, (always a bad thing to do) that horse breeding was at least as meticulous as dog breeding if not more. If you are interested in becoming a breeder, the best place to start is with a mentor in you chosen breed, but man it is a lot of work, and can really end up being expensive, I'm very glad people do it, but can't see myself ever walking that road, I'm just happy to be on many Dane puppy lists, accepted in their community as an excellent placement for their pet stock dogs. sjmdutch... Excellent point... and a terrible oversight on my part, ironically as a teenager I even worked for a couple years for a Gordon Setter breeder and his dogs were all field champions.

help!!!..INCOME TAX..employee stock options program..how to? my mother had an employee stock option plan at her old job...she started buying stocks in 2005 and held them until 2009 when she sold $3000 worth of stock...she did her income tax return and forgot to report them so she did an amendement..she only earned around $17000 that year when the amendment was done..the tax preparer added the $3000 for the stocks my mom had sold and told my mom that on those $3000 she owed $2900 in taxes!! she is 54 yrs old, held the stocks for almost 5 yrs..all the tax preparer asked was how long she held them..ive been reading up on them and i read and also from calling IRS that she should have been asked if they were qualified or non qualified stocks...does anyone know anything about this?? it just seems like being taxed $2900 for $3000 is too much...why would anyone ever buy stocks then! should i just take her w2 form and stock form she got for income tax and have someone else do them.?????