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Technology Stocks : Compaq
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To: Gerald Drews who wrote (9727)11/26/1997 10:59:00 PM
From: Paul Huang  Read Replies (2) of 97611
 
Gerald - I guess you may be wrong.

When employee stock options are exercised there will be gain show on your W-2 as other income if option price is lower than market price for same day sale. If exercised and kept the stock, you still need to pay tax as other income. However your tax basis for the stock you held is market price of the day you exercised.
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