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What is the taxable income when exercising NQs?

April 26, 2017exercising income nqs taxable

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What is the taxable income when exercising NQs?

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It is the total dollar value of the in-the-money factor on all of the NQs exercised. Example: if you exercise 1,000 options with a strike price of $31 and the current market value is $41, then the taxable income is $10,000 [ (41-31) x 1000 ].