Calling Financial / Tax Gurus
Discussion
I'll try to make this short ...
I have some stock options for the US company I work for, today I decided to exercise some expecting them to send the proceeds via a cheque which I could in turn deposit into a dollar account. Essentially I have 2000 shares assigned to me at a buy price of $37ish and they are currently $60ish. Anyway, they offer a service to effectively buy and sell on the same day so essentially I don't have to find any money to fund the purchase, they just send me the difference.
Anyway, I have been planning this around my CGT but when I had completed the transaction they informaed me thatthe proceeds would be sent to my payroll department. Upon further investigation the intent is to push this through my salary as an additional income and tax me accordingly? So I am lost, I tried to explain I have done share save schemes before like this and the proceeds from the share sale becomes part of a capital gain, not income. The only difference in the past is i have 'exercised' my option, kept them for a short while, then sold.
So who's right and any ideas where I can find some backup information on this?
Thanks!
I have some stock options for the US company I work for, today I decided to exercise some expecting them to send the proceeds via a cheque which I could in turn deposit into a dollar account. Essentially I have 2000 shares assigned to me at a buy price of $37ish and they are currently $60ish. Anyway, they offer a service to effectively buy and sell on the same day so essentially I don't have to find any money to fund the purchase, they just send me the difference.
Anyway, I have been planning this around my CGT but when I had completed the transaction they informaed me thatthe proceeds would be sent to my payroll department. Upon further investigation the intent is to push this through my salary as an additional income and tax me accordingly? So I am lost, I tried to explain I have done share save schemes before like this and the proceeds from the share sale becomes part of a capital gain, not income. The only difference in the past is i have 'exercised' my option, kept them for a short while, then sold.
So who's right and any ideas where I can find some backup information on this?
Thanks!
Stuart,
If I am following what you are saying ...
- If I buy/sell the same day, as I did, this is liable for Income Tax
- If I exercise my option, buy the shares at the agreed rate and then sell later this is then a capital gain?
Am I following your thought process? Funnilty enough I asked a couple of peeps and work (very tough to find someone who actually 'knows the answer' but they suggest the above was correct?
Cheers.
If I am following what you are saying ...
- If I buy/sell the same day, as I did, this is liable for Income Tax
- If I exercise my option, buy the shares at the agreed rate and then sell later this is then a capital gain?
Am I following your thought process? Funnilty enough I asked a couple of peeps and work (very tough to find someone who actually 'knows the answer' but they suggest the above was correct?
Cheers.
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