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Subject:  Re: Taxes on Company Options Date:  11/16/2013  10:37 AM
Author:  TMFPMarti Number:  119531 of 127642

Fidelity has the option grant in an option account. I tell them to exercise the option at current market. I indicate what fed and state taxes to take out. I get the difference between the grant price less the taxes. That is what has been happening. I never buy the stock.

Well, you do buy the stock. Otherwise you wouldn't have anything to sell to generate the cash to exercise the options. It's all like I explained it, it's just that the stock purchase and sale is transparent to you.

Also, these are long term options of over a year.

Does that make a difference?


Have you done this before? If so, before 2013? If so, did you get a 1099-B? If you've only done it in 2013, is it reflected in your paystub YTD numbers?

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