All of the following are benefits associated with statutory stock options EXCEPT: a) the taxpayer does...
All of the following are benefits associated with statutory stock options EXCEPT:
a) the taxpayer does not have to include any amount in income when the option is granted.
b) the taxpayer does not have to include any amount in their regular, taxable income when they exercise the option.
c) all profits from the sale of underlying stock are subject to the more favorable capital gain tax rates.
d) if the taxpayer has a nonqualifying disposition, the amount of compensation included in income is not subject to social security and medicare tax.
Homework Answers
Answer
Option D is correct.
Option a b c are related to statutory stock option and they relate to the benefits of statutory stock option. But option d is not benefits statutory stock option.
if the taxpayer has a qualifying disposaition the amount of compensation include in income is not subject to social security and Medicare tax.
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