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Taxable Event

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Taxable event
An event or transaction that has a tax consequence, such as the sale of stock holding that is subject to capital gains taxes.

Taxable Event
A transaction or other action that results in one receiving income that may be taxed. Common taxable events are the reception of a paycheck or the sale of stock for a profit. Often, investors wait to sell securities until a certain time (such as a new calendar year) in order to minimize the taxable events that occur in a given period of time.


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In fact, in 1984, Congress reversed the earlier position of the IRS that the expiration of a warrant is a taxable event for the issuer.
Every time you move money, you incur a transaction fee and it''s a taxable event (if outside a retirement plan).
The employee has to come up with the money to exercise the option, but the advantage is there is no taxable event when you exercise the option," says Babcock.
 
 
 
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