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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: LB11 who wrote (28015)	9/7/1999 11:38:00 PM
From: Paul Fiondella	Read Replies (2) \| Respond to of 42771

Your accountant's explanation doesn't sound right. If you exercise your option you establish a position in the stock. There isn't anything to tax at that point. You haven't gotten anything yet. You shouldn't have to pay any taxes until you sell the stock. Perhaps then you are taxed as if the amount was employee compensation. If what you are saying is true (that you have to pay tax immediately on the current market value of the stock) then there would be no incentive to hold any option granted stock. You would sell it immediately upon exercising the option.