Replies to post #144053 on Lightwave Logic Inc (LWLG)

[monocle]

My feeling is that this was a cashless exercise plus enough extra to cover his tax bill, same as J.M. last month.

[XenaLives]

Ask the IRS -

Not Readily Determined Fair Market Value - Most nonstatutory options don't have a readily determinable fair market value. For nonstatutory options without a readily determinable fair market value, there's no taxable event when the option is granted but you must include in income the fair market value of the stock received on exercise, less the amount paid, when you exercise the option. You have taxable income or deductible loss when you sell the stock you received by exercising the option. You generally treat this amount as a capital gain or loss. For specific information and reporting requirements, refer to Publication 525.

Page Last Reviewed or Updated: 04-Apr-2023

https://www.irs.gov/taxtopics/tc427