I have employee stock options at work andI've decided to purchase and hold the stock. As I've started purchasingthem I am being taxed on the difference between the issue price and thecurrent market price, is that a normal thing to be done and if so whathappens 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 Ipurchase 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 andthe $4200 purchase price. If this is normal, does it change my cost basisso when I sell them down the road do I show a purchase price of $50/shareinstead 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?
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