John M. Hoffman & Associates CPAs

Frequently Asked Tax Questions

Stock Options

Non Qualified Stock Options (NQUAL) 

• “How do I exercise my NQUAL options? I don’t know if I have enough money to even do that.

• What if I want to exercise the options and hold the shares?

The company that issued the NQUAL stock options gets a tax deduction when the option is exercised equal to the amount of taxable compensation to the employee.