Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Nehrboss who wrote (1777)	1/25/1999 1:58:00 AM
From: Colin Cody	Read Replies (1) \| Respond to of 5810

Richard, If you exercise a CALL - you just take your cost of acquiring that call and add it to the cost to exercise - for the tax basis of the shares you receive.

To: Richard Nehrboss who wrote (1777)	1/25/1999 10:38:00 PM
From: Richard Joslin	Respond to of 5810

LEAPs held more than 1 year that are sold will give rise to long term capital gain taxed at 20%. If the Intel LEAP calls are exercised, the Intel common acquired will have a holding period as of the date of exercise, i.e. short term. You must then hold the Intel shares acquired via exercise for more than 1 year to obtain long term gain treatment. If you do not plan to hold the Intel common for more than one year, reconsider the benefit of deferring the option gain through exercise if your marginal tax rate is greater than 20%.