No, and thanks for the additional information. Because your options were non-qualified, you don't get the preferential tax treatment of having sold incentive stock options. When you purchased the NSOs at a price of 20 cents, the FMV of those options was $1.40 for a difference of $1.20. You owe tax, at ordinary income tax rates, on that difference. Multiply the number of shares you purchased by $1.20 and the resulting amount is taxed at your ordinary income tax rate.
Your short term gain is the difference between the FMV of the NSOs on the day of your purchase--$1.40--and your sales price, $2.00. Thus, subtract from the gross proceeds of $100,000, the FMV of the NSOs on the day of purchase.
@clausiam
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