The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: taxes and options||Date: 1/4/2001 6:40 PM|
|Author: 1poorguy||Number: 43931 of 125216|
So I think you may remain....1poorguy
I expected that anyway! :-(
you owe the taxes on the stock even if you take ownership
If I pay taxes upon exercise (as ordinary income - on the value of the stock when granted 7 years ago?), then I guess the only difference will be whether I take the cash or take the stock (I'm assuming the former will generate a short-term cap gain since I will have owned the stock for only a matter of minutes). So perhaps my selling idea still makes sense since I can sell my ESPP shares for a long-term gain, take ownership of the option shares, and pay only the tax I can't escape from anyway.
Am I close?
Thanks for the reply, Beth.
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