What are the tax implications under each scenario?
Be sure to discuss what constitutes a Qualifying Disposition, a Disqualifying Disposition,
and the Bargain Element. A client comes to you with a request to learn of the tax consequences
associated with some stock options. What do you recommend? The specifics: Case I 1) Grant
date: January 1, 2018 2) Exercise price: $20/ share for 1,000 shares 3) Exercise date: March 1,
2020 4) FMV on exercise date: $100/ share 5) Sell the shares on April 1,2021 6) Stock price on
April 1, 2021 is $120 /share. 7) Tax bracket is 24%.
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What are the tax implications under each scenarioBe sure to discu.pdf
1. What are the tax implications under each scenario?
Be sure to discuss what constitutes a Qualifying Disposition, a Disqualifying Disposition,
and the Bargain Element. A client comes to you with a request to learn of the tax consequences
associated with some stock options. What do you recommend? The specifics: Case I 1) Grant
date: January 1, 2018 2) Exercise price: $20/ share for 1,000 shares 3) Exercise date: March 1,
2020 4) FMV on exercise date: $100/ share 5) Sell the shares on April 1,2021 6) Stock price on
April 1, 2021 is $120 /share. 7) Tax bracket is 24%
