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http://boards.fool.com/just-my-ho-and-peter-knows-much-more-than-i-but-23629170.aspx
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| Subject: Re: taxes and stock options | Date: 1/30/2006 8:44 AM | |
| Author: pussinboots1 | Number: 83176 of 118626 | |
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Just my HO, and Peter knows much more than I, but I think what might be going on here is a simple sale of options. I.e. the options are never exercised, the company simply bought the options from you. Hence, the cost basis is zero (since the options were given to you for free) and the sales price is $(P2-P1)x(number of options). Puss |
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