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To: Lynn who wrote (11191)3/11/1999 12:10:00 PM
From: ratan lal  Read Replies (1) | Respond to of 27722
 
I dont think ANY tax is due on stock options UNTIL the stock is sold.

You know what your purchase price is (the option exercise price). How would you decide what the profit is if you havent sold the stock ??

IRS doesnt care how you acquired your shares. Buy them for cash or get them by gift or exercise your option. Its only when you SELL that PROFIT (or LOSS) is established.