Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (5636)	7/25/2000 12:46:50 PM
From: IceShark	Read Replies (1) \| Respond to of 436258

What part of "I'm done with this" don't you understand? -g-

To: Ilaine who wrote (5636)	7/25/2000 12:54:36 PM
From: LLCF	Respond to of 436258

<The way I look at it, the employer should not get a tax deduction when it gives shareholders stock options in lieu of salary, as it is just a dilution of shareholder equity, and should be a tax-free event. However, as I understand it, and feel free to correct me if I am wrong, the employer DOES take a tax deduction when the employee exercises the option, so the corporation treats the transaction as if it were salary. It walks like a duck, call it salary. > Good way of looking at it... when an employee gets stock options they pay tax on it... why shouldn't the company be able to deduct it?? The fact that they do deduct later spotlights the problem... of course it was salary, it just wasn't reported til they had to. DAK