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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (32799)	3/18/2000 2:12:00 AM
From: nihil	Read Replies (1) \| Respond to of 77400

Qualified incentive stock options are not taxable until the stock obtained from exercise are sold; if held for 12 months (some exceptions) the capital gains on the sale of stock are taxable as long-term capital gains calculated from the strike price of the option (ordinarily the price at issue of the option). Ordinarily, the person faced with expiration of some of his options will sell previously purchased stock and use the (net) proceeds to pay for the newly acquired stock which will then be held until it qualifies for capital gains treatment and then is sold in its turn. It would be tax inefficient to sell newly acquired stock to raise cash to exercise the options for that stock. nceo.org