Author Topic: Exercising Options  (Read 176 times)

FI-King_Awesome

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Exercising Options
« on: February 05, 2019, 06:31:18 AM »
Hello,

I have options expiring and was planning to convert and hold in order to defer taxes (i.e. aim for capital gains tax post retirement), but just realized the plan is not a qualified incentive plan and therefore subject to regular income tax at time of exercise.

Is there any way around this?  Any advice?

Obviously, it would have made sense to invest as soon as the options vested, and thereby pushing part of the gains out, but that ship has sailed..


Thanks in advance!

FI-King_Awesome

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Re: Exercising Options
« Reply #1 on: February 07, 2019, 05:04:52 AM »
No clever advice here?  Just take a solid to the balls and suck it up?

seattlecyclone

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Re: Exercising Options
« Reply #2 on: February 07, 2019, 09:03:37 AM »
Sounds like you either get something (discounted shares, even after taxes) or nothing (expired options). Something is generally better than nothing. If the tax on this income pains you so much, donating the resulting shares to your favorite charity should take care of the problem.