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Strategies & Market Trends : Employee Stock Options - NQSOs & ISOs -- Ignore unavailable to you. Want to Upgrade?

To: R2O who wrote (757)	8/9/2005 9:11:01 PM
From: GVTucker	Read Replies (1) \| Respond to of 786

R2O, RE: I take it that the IRS does not, then, consider the 123 option expenses to be tax reducing expenses. And then the question is: why not since it's a real expense? Taxable income isn't GAAP income. Accelerated depreciation isn't an accurate picture of GAAP depreciation expense, either, for example. There are all kinds of differences between taxable income and GAAP income. Know of any on-line specific sources for such back calculations? Look at any of the large number of research papers verifying the accuracy (or lack thereof) of the Black-Scholes option pricing model.