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Financial Planning / Tax Strategies


Subject:  Re: taxes and options Date:  1/4/2001  6:40 PM
Author:  1poorguy Number:  43931 of 127753

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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