Options Trading Tutorial

Employer Stock options, is only the profit taxed?

If my employee option is for $30 and the stock trades at $31, is the taxable profit $1 ? I want to exercise as a cashless transaction with my employer so do I pay tax on the full $31?

Public Comments

1. Only the profit is taxable income. Profit is selling price less purchase price. http://taxipay.blogspot.com/2008/04/list-of-articles.html