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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 159.59-3.9%Nov 20 3:59 PM EST

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To: DaveMG who wrote (26899)4/13/1999 4:02:00 PM
From: Sawtooth  Read Replies (1) of 152472
 
I'll take a whack at that just to dangle out some bait for anyone who thinks I'm wrong:

The way I understand it is: If you exercise your option, the call, the basis in the stock acquired is the exercise price plus the cost of the call plus all commissions and any other transaction costs. Tax is due when you sell the stock, assuming you have a net gain. If you buy and sell the option without exercising it, the taxable event is the gain on the option transaction, adjusted for commish and any other costs. Since I'm not big into stock option transactions, I look forward to any correcting comments. ...Tim
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