Post by
JWING17 on Feb 08, 2022 7:39pm
Tax..It's a big deal...
The ordinary income tax rate is currently almost double the capital gains tax rate, so optimizing your exercise strategy to maximize the benefits of long term capital gains tax treatment will result in lower tax liabilities. In other words, the smaller the gap between your strike price and the stock price when you exercise, the more you could benefit from capital gain tax treatment.
Comment by
Markhamjohn on Feb 08, 2022 8:43pm
JWING, did you forget about: Deduction for Employee Benefit from Exercising an Employee Stock Option: Paragraphs 110(1)(d) and 110(1)(d.1) Subsection 110(1) of the Income Tax Act allows the employee to report only half of the benefit derived from exercising the employee stock option.
Comment by
JWING17 on Feb 09, 2022 6:00am
No I don't care, I was just trying to point out the implications of waiting to exercise options. But, you seem to know all that. Sorry to take up your time. If it was not helpful...Please ignore.