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Biotech / Medical : Misonix Inc. (MSON) -- Ignore unavailable to you. Want to Upgrade?


To: johne who wrote (585)12/22/1997 5:25:00 AM
From: SPEEDRACER  Read Replies (1) | Respond to of 947
 
Johne,
Check that again... I believe that iso's are taxes the following way.
On the day of exercise, the difference between the strike price and the market price on the day of exercise is taxable as ordinary income, wether you sell the stock or not. From the day of exercise to the day you dispose of the stock is treated as if you bought the stock on the day of exercise at the current market price. For ex. if the exercise price is 10 and the day of exercise the stock is trading at 30, you have an ordinary income tax liability of 20 $ wehter you sell the stock or not. Then your basis for the stock purchase price is 30 and regular capital gain rules apply from that point on using the 30 $ purchase price. SPEEDY==============================================================