It’s important to make the best decisions when it comes to stock options and to consult a qualified advisor. Wrong decisions can result in the loss of a lot of money. Whether you’re facing employer stock options, a restricted stock option, or something else, you need to understand the full scope of the issue.
One common mistake when considering stock options is ignoring the tax implications. It can come as a surprise to realize you owe a sum of tax money on an investment if it’s made at the wrong time or under the wrong circumstances. Some taxes to consider are:
- Income Tax
- Capital Gains Tax
- Alternative Minimum Tax
- Net INvestment Tax
Understanding the different ways tax liability can affect your investment is an important step in assessing stock options. This is why it’s critical you take the time to speak with an advisor about your options before purchasing stock. An expert can direct you in the best stock exercise option for your situation to avoid unwanted taxes or fees.
If you need assistance considering your stock options, click here to schedule a free consultation with a skilled accountant today