<<Are stock options or "put warrents" taxable when exercised or granted? I became interested in this matter when it was reveled to me that Microsoft was paying it's employees in warrents that allowed them to purchase stock, Microsoft stock I presume, at a reduced price. I also was interested in whether or not the employee or Microsoft paid any Social Security taxes on the warrents. Anybody care to offer some advice?>>

Stock options and warrants are two entirely different issues for tax purposes. I would suggest that you visit the Fairmark tax site (http://www.fairmark.com) for the best discussion regarding options as compensation anywhere on the web. Once you spend a few hours at that site, you'll have a better understanding of options and how they work from both a compensation and tax standpoint.

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