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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (384023)	4/2/2003 11:20:13 AM
From: Kevin Rose	Read Replies (1) \| Respond to of 769670

"Re: "Most options are granted using the current value of the stock. If they aren't, then typically the difference is counted as ordinary income for that tax year." >>> Only when the options are exercised... not when granted. Of course, there is one HUGE difference between grants of restricted stock and stock options grants: for stock grant compensation, it is an immediate tax deduction to the company, and the expense of the grant is counted against reported earnings. For options grants, it is an immediate tax deduction to the company, but the expense is not required to be counted against reported earnings." Yes, of course, you're right. Sorry, I should have said that the difference is counted in the year exercised. Even the tax man can't justify taxing an option before the individual exercises it. :) The debate of expensing options is a different beast. I happen to think that companies should not have to expense, basically because people should be looking at the dilution to calculate company valuation. Better reporting of options and their future dilutive effects is of course important. But this is a whole nother debate... When you talk about inequitable tax treatment, then you have to also consider the AMT. I know of individuals who were virtually ruined in the bubble by AMT. They should at least raise the AMT tax so that it doesn't hurt the rank and file worker who busted his/her butt for years and then had to file bankruptcy because of an unfair tax.