If I exercise the stock otptions by buying and holding (without selling) in 2006, do I need to pay tax?
401525
No, as long as you don't sell, there is not a taxable moment.  So, you won't have to pay tax on any gains on your stockes until you actually sell them (or transfer them to another person).
11942
You can claim a capital loss without selling a stock if it is deemed "worthless", but  I don't think a delisting necessarily makes a stock "worthless"
73493
The capital gains are distributed to the shareholders.  You have to pay taxes on your portion, unless its a tax sheltered account, whether you take them in cash or reinvest them.  The Net Asset Value of the mutual fund shares are reduced accordingly.
38295
$30.00...before State and Federal Income Taxes, Capital Gains Tax, Broker Fees, etc. If you sold the stock you bought for $500.00 for $530.00, you'd net about $5.00...!
116392
I am not sure if it is beacuase I have a margin account or not, but I don't think so cause it seems to work the same in my IRA acocunts, but I am not paying any interest. But if I sell stock A I can then buy stock B right away.\n\nThe only time it is a problem is if I sell stock B and try to buy stock C before the stock A funds have shown up. So it might be your broker. I use ameritrade.
714168
There is no “regular” tax implication when exercising stock options.  The regular tax kicks in when you sell the stock.\n\nIf the stock is sold more than 1 year after it was exercised AND more than 2 years after it was granted, then the gain from the grant date to the sell date is all capital gains.\n\nIf the stock is sold 1 year or less after it was exercised OR 2 years or less after it was granted, then the gain from the grant price to the Fair Market Value (FMV) when it was exercised is considered ordinary income not subject to FICA.  The remaining gain/loss is capital gain.  It is long term if the stock was held more than one year after it was exercised.\n\nAMT:\n\nAlternative Minimum Tax is different in that the exercise event DOES trigger tax.  The built-in gain from the grant date to the FMV at the exercise date is added to your AMT income.  When the stock is eventually sold, you will do two Schedule Ds...one for Regular Tax with the basis equal to the grant date price, and one for AMT with the basis equal to the FMV price.  Your regular gain will be larger than your AMT gain because your AMT basis will be larger.....you've already paid tax on some of your AMT gain whereas you didn't pay any regular tax on this gain.  Confusing, isn't it.\n\nWill you definitely have AMT when you exercise ISO stock?  Not necessarily.  Your AMT will be affected, but will it grow to the point where it will be higher than your regular tax?  It depends on other items on your return.  To get an idea of how much you can absorb, go back to your 2005 tax return and figure out your AMT and see how far it was below your regular tax.  This is an estimate of 2006, not a guarantee.\n\nIf ISO exercise does cause your AMT to be larger than your regular tax, of course, you will have to add the difference to your regular tax as you expect.  However, unlike other things that trigger AMT, ISO exercising is refundable.  What?  You get a credit for whatever additional tax you have to pay due to ISO exercising.  This credit carries forward to next year and, if not used up, carries forward to the next year.  It keeps doing this until it is used up.  This credit goes against regular tax until it drops to your AMT tax.\n\nComprehensive example:\n\n2006: Your normal regular tax is $20,000.  Your AMT is $16,000.  You exercise 10,000 shares with a FMV of $10/share with a grant price of $4/share.  You have to add 10,000 x (10 - 4) = 60,000 to your AMT income causing, let's say, $15,600 of additional AMT tax.  AMT is now $31,600 which is $11,600 more than your regular tax.  So, for 2006, your tax liability is $31,600, however, you get a credit of $11,600.\n\nIf in 2007, your regular tax is still $20,000 and your AMT is still $16,000, your tax is $16,000.  $4,000 of credit was used to lower your regular tax down to your AMT.  Your credit now drops to $7,600.\n\nIf in 2008 you sell the stock for $20, your regular gain is 10,000 x ($20 - $4) = $160,000.  Your AMT is 10,000 x ($20 - $10) = $100,000.  Again, you figure out your regular tax and AMT and if the AMT is lower than your regular tax, you get to use the carry-over credit until it is used up.\n\nOf course, part of your basis is your brokerage fees, but to keep things simple, I ignored these.  If you sell at a regular loss or even at an AMT loss, the rules still apply, but you can only get $3,000 per year of loss to use against other income.\n\nHope this helps  :)
1054968
Short term gains are taxed at the regular tax rate, just like interest and dividends.  To compute gain, subtract orignial cost, brokerage fees and "reinvested dividends" from net sales proceeds.  Your broker should provide a statement.
1121999
I think  you'll need to invest a lot more money than that. If you earn 6% (which is about the average annual gain on an investment) you are only gaining 30,000 pounds a year, and when you withdraw that money from it, you'll lose a good portion of it to taxes and such, probably close to 1/2 of it.
1069923
Yup, you're taxed on income (salary, dividends, rental income etc).\n\nProperty is taxed yearly based on the value of your property (I think).  \n\nBuying and selling shares are taxed on point of sale, so if you do not have any other income, you can file for a refund at the end of the year.\n\nCapital gains are NOT taxable so if you strike the lottery, it's all yours.
700320
While there are several type of stock options generally the amount of money that the company is putting up for the stock is taxable in the state in which the company is located.  Therefore it is very likely that what they have told you is correct.  If you hold the stock for any period of time and sell it at a gain, that gain would be taxable in the state of your residences.  This event is likely to require that you file a tax return in both states.  The good news is that you off set one states taxes with a like deduction for that tax in the other.  \nOptions are sometimes very tricky to properly report on your tax return.  You may wish to consult with a tax professional in your area.  You should attempt to locate some one that is familiar with stock options.
582371
As lovely an idea that it, no it won't avoid any taxes. The only way to avoid the capital gains or ordinary income taxes on ivestments is for you to invest in a tertirement account like an IRA or Roth IRA or employee benfit plan.\n\nIt sounds like you own a business. Speak with your CPA to find out which plan is best for you. SOme examples are\n\nSEP\nSimple SEP\nSimple IRA\nSimple 401k\nRoth IRA\nTraditional IRA\n\nAS you can see, there are alot of choices. Each one has its benefits and srawbacks. Some are tax free and some are just tax deferred until retirement.\n\nIf these plans arent an option for you, look into index funds, they typically have low if not any turnover. \n\nTurnover=capital gains=taxes\n\nGood luck
730852
Well, for publicly traded companies, just call their investor relations departments and ask for the annual shareholders' report.  They'll be happy to send it to you because they would like you to believe giving them your money is a good idea.\n\nCompanies that aren't publicly traded aren't required to have annual reports or tell anyone anything about their businesses.
735662
If you are cashing out, then it would not make a difference if you sell before or after the distrubtion date. However, if you can wait till next year you can differ your capital gains tax.\n\nIf you are putting money into the fund then it is best to invest after the distrubtion date. Typically when a fund pays out (dividends & cap gains) the NAV (Price) drops; however, the number of shares you own increases if you selected for dividend/cap gain reinvestment. In other words,  your total account value will remain unchanged. However, the capital gain distrubtions may be taxable (If not in an IRA), and therefore, it is best to differ your taxes to next year (Assuming that you are in the same tax bracket next year)
940424
Yes. It is income and in the US you are going to pay taxes on income. (MOST of it anyway). There is more that is needed to answer the question. If the earnings are from the sale of the account then you might have Capital Gain. As an accountant my best advice is to contact an accountant. Probably not much help for your question but there are too many variables to fully answer.
390413
Anything that has to do with the past/future submissions of your state/federal taxes should be kept for seven years.\n\nALSO.. another thing VERY IMPORTANT.. If you have stocks and have dividends each year and you pay taxes on THOSE dividends, keep the papers until you SELL or liquidate the stocks. You do NOT want to pay taxes on the gains in the year you sell the stocks IF..... IF you have been paying taxes on the dividends in the years past. The IRS tried to get me one time but.. I kept ALL the dividends earned and the tax papers proving that I paid taxes on them.. I kept some for 25 years.\n\nLight bills, cable bills, etc can be gotten rid of after a year
861113
Incentive stock options are not subject to regular income tax on exercise, but do give rise to an item of tax preference.  On the sale of the stock at least one year after exercise and two years after receipt of the option, and satisfaction of a bunch of other requirements, you would have capital gain for federal income tax purposes.  With non-qualified options, you will have income on the exercise of the options.  California follows federal definitions and timing but offers no capital gain preference.  You mentioned that the granting company is a start up, so exercising the options right away probably means no income on exercise and capital gains on sale if you hold for a year.
178259
Your tax rate is 15%.  This is assuming that this is straight income from operations and that you had no gain on the sale of assets.