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Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 77.42

+4.6%

Nov 13 3:59 PM EST

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To: lawdog who wrote (34668)	5/5/2000 6:35:00 PM
From: The Phoenix	Read Replies (2) of 77398

Capital Gains.... There are no Capital Gains on exercise of NQ's. Get it? Section 83 discusses dedections for transfered capital that has a cost basis against which there is a resulting increase in INCOME. That's income... not capital gains. THAT is what I said... FURTHERMORE the cost of carrying these options are included in the earnings through the use of a diluted earnings number. OK? You're a poor excuse for a CPA. OG

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