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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (44875)	4/19/1998 8:47:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 61433

Chuzzle, I've never heard of an AMT tax consequence ... or any tax consequence of any sort... for something that you don't and have never owned. Let me put it this way. If you have options....you don't own them until you exercise. An option is simply the right to buy a stock at a given "strike" price. If you never exercise, and the option expires, then you owe nothing....and you own nothing. At least this is my understanding....Anyone out there have a correction to this? BTW: The type of option you have will also have an effect on AMT taxes.. If you have (and exercised) ISO (Independent Stock Options?) you will likely have AMT implications since no tax is paid on exercise. On the other hand there are NQ's (Non-qualified Stock Options) where taxes are taken out immediately upon exercise at a 28% rate. So with AMT's you will have not paid tax come Dec 31...and the government will want their fair share come April 15.... WHETHER YOU STILL OWN THE STOCK OR NOT.... This part kinda sucks. That is, if you've exercised and HELD..to get the 20% cap. gains treatment, you still are subject to AMT come 4/15. So, you might have to sell a few shares to pay tax...or take out a loan. I know this is confusing...but the IRS likes it that way... OG (aka Gary not Korn)