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URL:  http://boards.fool.com/gt-subject-stopck-option-iso-cost-basis-gt-11898009.aspx

Subject:  Re: Stopck Option (ISO) Cost Basis Date:  1/30/2000  9:15 PM
Author:  CheetahChrome Number:  26412 of 121572

> Subject: Stopck Option (ISO) Cost Basis
> Author: baderl Date: 1/29/00 3:36 PM Number: 26309

> In 1997, we had to exercise 'Incentive Stock
> Options' granted to my wife. The option were
> granted to her in 92. The option price
> was 8. When we exercised, the stock price
> was 20. We reported the difference (20 - 8 = 12)
> as an AMT item in calculatin the AMT
> tax for 1997 (again done with TTax).
> We still have the stock. If we sell the
> stock in this year (ie. 2000), what is the
> cost basis of the stock. Is it still
> 8 (original price the stock was boought
> at) or is it 20?

The basis is still $8. (The basis only changes if you exercise NQOs).

Cheetah

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