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Technology Stocks : Intel Corporation (INTC)

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To: tcmay who wrote (173090)	2/17/2003 2:37:04 PM
From: NITT	Read Replies (1) of 186894

re:"But if I am paid, say, $5000 for an option I sell to Dorenda to buy my current house for $500,000, then that is _income_ to me. And an _expense_ to Dorenda. And if Dorenda's employer buys that option for _her_, then he has given her a $5000 gift/bonus. And thus the tax code already takes care of how these things are handled" I believe that the in your scenario, that if it is truly an option (the buyer does not have to purchase the property), then the $5000 does not become subject to income taxes until the option is either exercised or it expires. Not sure what this does to your concept. I believe the issue is establishing a fair way to value an option that is not salable and is subject to remaining employed. My belief is that as long as the tax man can collect taxes on once the option is exercised (in the case of non-qualified options) or when they are sold (in the case of qualified options), then the only thing a corporation should be required to do is clearly report what options are being granted and at what price... and possibly to what class of employee. Nitt

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