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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Logain Ablar who wrote (64682)6/27/2006 7:36:47 PM
From: ScatterShot  Read Replies (1) of 110194
 
The stock options most grunt employees get should not trigger the AMT if they do the cashless sell. I've exercised a few times and the income is treated as ordinary income with withholding, SS and Medicare withheld at the same time and all included on the W2 at the end of the year.

Even though I find it insane to exercise and hold (use real money to buy at the grant price), your statement is correct, I think. You are taxed on the value of the shares when you exercise even if the value falls. And no tax has been withheld.

Maybe a less of a grunt can explain why anybody would want to do that? Oh, yeah, the options are about to expire and yer a greedy, gamblin' sumbitch!

Dealer! All in! Let it ride! Double down!

Honestly, no lie, I sat next to a guy at the Desert Inn who got an ace and a 10. The dealer started to pay him his 1.5x but he said Wait! I'm doubling down. Sumbitch drew a 10.
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