Options Trading Tutorial

Stock Capital gain and loss?

Heres the senerio If you received employee stock option on 4/30/04 and it was an incentive and cashed it 06/30/07.. How do you figure the gain or loss ??

Public Comments

1. Sales price - (Exercise price + income, if any when you received the option) = gain.
2. If the company gave you the stock, you may not have a basis (cost) to figure in. This is a short-term capital gain because you held it less than one year. You should have some kind of statement where the stock was either awarded to you or where it shows how much money you have in it.