How Do You Buy And Sell Stock Options To Minimize Taxes?
If your company offers stock options, carefully consider how to handle them so you end up with the lightest tax burden possible. Hiring an account is a wise investment if you want to maximize your tax savings. Only a qualified accountant who has examined your financial situation can provide specific advice. Wait to see how your stock options perform before you exercise them. What you ultimately do with them will depend on their value. Most stock options will have an expiration date. Exercise your options early in the year. This gives you time to make a final decision about them. Hang onto stocks that are doing well as long as you can. Every year you hang onto them is a year you don’t have to pay the capital gains tax. Sell off the stock before the end of the year that you exercised your options if the market value was much higher than your option price the day you exercised. This way, you don’t pay the Alternative Minimum Tax on the difference between the price you paid and what the st
