Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: barrysellers Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121599  
Subject: Stock Options Date: 3/21/2000 3:27 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have employee stock options at work and
I've decided to purchase and hold the stock. As I've started purchasing
them I am being taxed on the difference between the issue price and the
current market price, is that a normal thing to be done and if so what
happens when I sell them eventually, don't I get taxed on that income again.
Let me give you an example: issued at $42/share (value $4200) and I
purchase 100 shares and the current market value is $50/share (value $5000),
I'm being taxed on $800 which is the difference between the $5,000 value and
the $4200 purchase price. If this is normal, does it change my cost basis
so when I sell them down the road do I show a purchase price of $50/share
instead of the $42/share since I have already paid taxes on the $800?
If not it seems I will be double taxed on that $800 if I sell them, right?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement