Tanya received 1,000 nonqualified stock options (NQSOs) when she started working at Basswood Co. At...
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Tanya received 1,000 nonqualified stock options (NQSOs) when she started working at Basswood Co. At that time, the stock price was $11 per share. The options vest in two years, and each option gives her the right to purchase one share of stock for $10 per share. After three years, when the share price was $20 per share, she exercised all of her options. More than one year later, Tanya sold all of her shares for $24 per share. Tanya's marginal tax rate on ordinary income is 32 percent, and her rate on income taxed at a preferential rate is 15 percent. What is the amount and date of Basswood's deduction (for tax purposes) with respect to the NQSOS
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