John M. Hoffman & Associates CPAs
Frequently Asked Tax Questions
Non Qualified Stock Options (NQUAL)
"What if I want to exercise the options and hold the shares?"
Not sure why you would want to. In this case, you would need to come up with the $350,000 to exercise the options as well as the $60,000 of cash for the taxes withheld. Coming up with $410,000 so you could own $500,000 in one company does not sound like a great investment strategy, especially since you already have the exposure of working there.
So as you can imagine, almost always these options are exercised in a same day sale cash less transaction.
