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URL:  http://boards.fool.com/that-leads-to-two-transactions-the-exercise-of-30978770.aspx

Subject:  Re: Taxes on Company Options Date:  11/16/2013  7:37 PM
Author:  FlyingDiver Number:  119537 of 123001

That leads to two transactions. The exercise of the option is not actually a taxable event. The taxable event is selling the stock. Because this stock was acquired through an employee stock option, tax law deems the income to be ordinary wage income rather than a capital gain.

I'm going to nit-pick on Peter here, based on my experience of exercising employee stock options.

Two events are correct, but both of them are taxable:

1. Exercise the options. That's a taxable event generating ordinary income of the difference between th