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Technology Stocks : The New Qualcomm - a S&P500 company
QCOM 173.43-0.8%Dec 29 3:59 PM EST

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To: John Biddle who wrote (4549)12/24/1999 3:24:00 PM
From: engineer  Read Replies (1) of 13582
 
Not true. ON Qualified options, you can take it wihtout income tax rates, only AMT rates. On NON-Quals, you take it as ordinary income when you exercise. But you only have to pay a minimum amount at first. The law requires that they withhold 28% fed and 6% state for you to take them, so you must pony up the strike price and then pony up the taxes on the difference between the strike price and the fair market value that day to get them. but if you excercise them in January, you have about 14 months to come up with the differnce between the 34% and the 48% you have to pay. If you have deep in the money options, you can usually take a margin loan out to buy them all and if it was QCOM stock, you can probably pay the difference off with the increase at the end of the year and also convert the difference between your fair market value at exercise and when you have to sell for taxes to capital gains rates.
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