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Politics : Piffer Thread on Political Rantings and Ravings -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (4902)	11/30/2001 1:01:49 PM
From: Alan Smithee	Respond to of 14610

In general, there is withholding on the exercise. The problem occurs when the shares are held past the end of the year. It's treated as a tax preference item for AMT purposes, and yet more tax is due. In the case of many dot.bomb stocks, people exercised, held the shares, shares tanked, and now there's insufficient value there to sell the shares to pay the tax man. Why, some folks are even faced with the prospect of selling one of their two or more homes to pay the taxes (gasp)!