I held options (granted several years back through an incentive plan, all vested) with a private company of which I was an employee. We were bought by another company in 2010; I was let go and my options were converted into stock certificates for the acquiring company. I sold some of this stock in 2010 and kept the rest. I have 1099B forms for the stocks I sold.
I'm confused on how to declare this for 2010 federal taxes. Do the certificates count as income worth the stock price on the day the certificates were issued, and then I declare a short term capital gain on the part that I sold? Does the fact that the options were granted several years ago make this a long term gain somehow? Thanks!
I'm confused on how to declare this for 2010 federal taxes. Do the certificates count as income worth the stock price on the day the certificates were issued, and then I declare a short term capital gain on the part that I sold? Does the fact that the options were granted several years ago make this a long term gain somehow? Thanks!
