Hi all -
Newbie here on Employee Stock options and I have searched around however I still have few outstanding questions, hoping someone can help shed some insight.
Context:
I have joined a company pre IPO with X amount stock options. The company has IPO sinced. I am thinking of diversifying eg: sell my stock options. The provider is with Fidelity and has a "Cashless Exercise" options which I have chosen and executed same time.
Fidelity has this flow diagram on details of executing a cashless exercise:
https://ibb.co/SPx0cz8
Lets say for example purposes we use the same numbers from the Fidelity diagram:
200 shares, grant/strike price $20 and FMV is $30.
My account balance has $2000.
It seems it will get deducted when it gets reported on my W2 (see below)?
2 - Can someone help confirm my assumption:
So my end of year W2 will have a reported $2000 in there as ordinary compensation income. Is this accurate? This will have the taxes as normal income would be taxes?
And the Form 1099B should have as:
gross proceeds Box1d = $6000
Cost basis box1e = $6000 (since exercised and sold at same price)
Newbie here on Employee Stock options and I have searched around however I still have few outstanding questions, hoping someone can help shed some insight.
Context:
I have joined a company pre IPO with X amount stock options. The company has IPO sinced. I am thinking of diversifying eg: sell my stock options. The provider is with Fidelity and has a "Cashless Exercise" options which I have chosen and executed same time.
Fidelity has this flow diagram on details of executing a cashless exercise:
https://ibb.co/SPx0cz8
Lets say for example purposes we use the same numbers from the Fidelity diagram:
200 shares, grant/strike price $20 and FMV is $30.
My account balance has $2000.
1 - Is been more than a week and taxes have not been withdrawn from my balance? Is this normal? How will Fidelity know my tax rate/bracket?For last step 5: For taxes:
Within one or two business days of the transaction, taxes will be withdrawn from the account.
It seems it will get deducted when it gets reported on my W2 (see below)?
2 - Can someone help confirm my assumption:
So my end of year W2 will have a reported $2000 in there as ordinary compensation income. Is this accurate? This will have the taxes as normal income would be taxes?
And the Form 1099B should have as:
gross proceeds Box1d = $6000
Cost basis box1e = $6000 (since exercised and sold at same price)
Statistics: Posted by L1tt1eMinon — Thu Sep 12, 2024 1:50 pm — Replies 1 — Views 89