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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST

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To: BGR who wrote (94719)2/4/1999 12:13:00 PM
From: TigerPaw  Read Replies (1) of 176387
 
As I understand the option plan, If shares are redeemed, that is to say you want to buy the stock at the option price then the difference between the option price and the current market value is taxed as regular income. Now you own the stock and any further appreciation could be captial gains if you hold for another year.

If you buy/sell the option in one transaction it is all regular income. If the option price is very very small, there is little difference between the two choices tax wise.

This applies to options granted as incentive, and not those purchased on the open market.
TP
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