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To: Judy who wrote (24123)	3/6/1999 2:10:00 PM
From: SE	Respond to of 50167

Judy, Holding period of the stock acquired by exercise of a call option begins on the day after such exercise. -Scott

To: Judy who wrote (24123)	3/6/1999 2:18:00 PM
From: Sonki	Read Replies (1) \| Respond to of 50167

judy, u loose ur holding period for the time u held options. You basis on the stock is exercise price + options price. so don't forget to add that to your basis. Thesse are tough decesions cuz u already have estalbished a long term gain on the options and u have to start it all over again. So some times I will exersice my long term leaps a longtime before they expire just to get going on my holding period. i did this w. yahoo(y2k1) cuz the yahoo leaps moved very fast and i knew i would have to exercise the stock sooner or later. i have not dones so for amzn. other advanatage is you get more marginability as soon as u exercise. so if u have termendous amount of gain in your leaps where you have practically lost all the time value it's best to exercise sooner then later. i hope this helps.

To: Judy who wrote (24123)	3/6/1999 2:32:00 PM
From: Logain Ablar	Read Replies (1) \| Respond to of 50167

Judy: The answer to your first question is yes. I see we've had some responses to the second question. Sonki's sounds right but I'll refresh my memory (i.e. I'll recheck the code, sec. 1234 is the general area, and regs and post later to the thread). I know any gain on exercise is added to the basis of the security acquired but I'm not sure on the holding period. Tim Tim

To: Judy who wrote (24123)	3/16/1999 8:43:00 PM
From: Logain Ablar	Respond to of 50167

Hi Judy: I just posted the holding period rules on capital assets on a tax thread, see link below. Your specific question If one exercises leaps to buy shares, for tax purposes, is the purchase date the option purchase date or the exercise date? When there is a purchase option, the holding period begins on the day after the option is exercised. Message 8354634 Sonki was right except the holding period starts on the day after not the day of exercise. Not quite enough time in the day to be timely in responses <g> and I wanted to check the code and regs. Investment taxation is not my area (more corporate and insurance and I've been moving away from those areas as well). Speaking of insurance it looks like my old employer is finally starting to show some appreciation. Not sure on the chart but excluding the $120 lawsuit loss in February the fundamentals are improving. I'd expect it to move back to $120 unless congress passes a bill allowing patients to sue HMO's (with the insurance lobby and weakened presidency and congress I doubt that will happen). Tim