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Biotech / Medical : Vasomedical Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Fred Levine who wrote (1164)	3/12/2000 12:51:00 PM
From: nihil	Respond to of 1605

The date for establishing capital gains treatment of the ISO is the later date of the grant (2 years) or the date of exercise (1 year). You must hold the stock for at least a year after exercise. Often the company will lend you the money to carry it. If not, your friendly neighborhood loan shark will be glad to finance it. 4. Tax Implications for Employee An employee receiving an incentive stock option realizes no income upon its receipt or exercise (see IRC section 422(a), incorporating by reference the nonrecognition provisions of IRC section 421(a)(1)). Instead, the employee is taxed upon disposition of the stock acquired pursuant to the incentive stock option. A disposition of incentive stock option stock generally refers to any sale, exchange, gift or transfer of legal title of stock, including a transfer from a decedent who held incentive stock option stock to an estate, a transfer by a bequest or inheritance, or any transfer of incentive stock option stock between spouses or incident to a divorce (IRC section 424(c)(1)). The tax treatment of the disposition of option stock depends upon whether the stock was disposed of within the statutory holding period for incentive stock option stock. The incentive stock option statutory holding period is the later of two years from the date of the granting of the incentive stock option to the employee or one year from the date that the shares were transferred to the employee upon exercise (IRC section 422(a)(1)). www.niceo.org