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Financial Planning / Tax Strategies


Subject:  Re: Determining stock options sell/exercise date Date:  1/8/2000  9:14 AM
Author:  BladeXrunners Number:  24616 of 128126

On 12/27/1999 I requested my broker do a same day sell on 600 shares of ISO stock options. My broker says the "sell" took place on 12/30/1999. My stock option adminsitrator says the "exercise" occurred on 1/4/2000.

On second thought, this is a short sale. Generally, the tax year is the year you deliver the stock to close the short sale. The exception is if you execute this while holding an appreciated position, then it's tax in the year of the short sale. Because your stock option is "above water", I believe that constitute holding an appreciated position even though you don't physically own the stock--you own the right to an appreciated stock. Again, all guessing. Sorry to confuse you some more. First time I encounter someone doing "same day sell" when it's not.

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