Hi folks. First forum post so try to be nice….
I have stock options through work. They were granted a few years ago at $10, and are now $30. I'm looking to exercise the options now.
As I understand it, the gain is $20 - which I will pay income tax on at the end of the tax year, if I sell them or not. I plan on holding them for at least a year. If I hold them for say 2 years and sell them at $40 (fingers crossed) my cost base is $30, and I only pay tax on the new gain of $10 (the difference between what I paid for them, $30, and what I sold them for, $40).
Because I held them for 12 months+ I only pay cap gains tax on 50% of the gain, right?
Thanks for any guidance!