Who Really Pays Taxes? Message Board

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Non-Tech : Who Really Pays Taxes?

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To: Lizzie Tudor who wrote (273)	8/15/2000 11:43:25 PM
From: Win-Lose-Draw	Read Replies (1) of 666

So you are looking at about 400K taxed as income for one guy and taxed as a lt capital gain for the other person. The person who purchased the stock on the open market risked their own capital. If the Yahoo employee exercised the options and held the stock they would be taxed in a similiar fashion to the non-employee. It's only when the options are cashed out (exercised and sold in what is basically one transaction) that it looks like income.

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