WR's Momentum Trades Message Board

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Strategies & Market Trends : WR's Momentum Trades

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To: Lola who wrote (9720)	3/20/2001 6:52:48 AM
From: ChrisJP	of 11130

Hi Wayne and Lola, I got a more definitive answer back from my source at MSFT: According to him: "The AMT is based on paper profits on the day you exercise the option and buy stock -- even if the stock later crashes and you lose the profits. It's triggered when you exercise an incentive stock option in one year and hold the stock into a later calendar year." "The AMT applies to incentive stock options granted to employees, but not to the more common non-qualified stock options, which can be granted to both employees and non-employees, such as outside consultants. The two kinds of options have different tax consequences." MSFT grants non-qualified options. Does that make you feel any better? Regards, Chris

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