Options Trading Tutorial

ESPP, Stock Options, Restricted Stock Units, and taxes?

ESPP -> Got them one day, sold them the next day to maximize the 15% discount. Since the basis was post-tax dollars, only the gain needs to be calculated. Stock Options: One day buy-and-sell. What is the cost-basis: is it my option price or market price per share? What is the taxable part? The (sale price - option price) or the sale price? Restricted Stock Units: Got x amounts of RSU. Taxed immediately, so I only got (2x/3) of the granted amount. Again, where do I start with the stock price since these are "free" shares? Any examples will be helpful. I do not want to go and get the IRS Tax Publication workbook from my local IRS office. Thanks.

Public Comments

1. Sounds like homework, dude.
2. In the small print of all stock options there should be a warning that taxpayers should not try the dangerous task of doing their own taxes. Every year I do a number of audits for people that have attempted and failed. Go see a professional familiar with this stuff.