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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: The Phoenix who wrote (24354)	4/12/1999 10:44:00 PM
From: Techplayer	Read Replies (1) \| Respond to of 77397

Gary, When you sell the security, you are not guaranteed to get that AMT credit in the year that you sell it. I have been contributing to AMT for 3 years now (despite selling specific blocks that AMT was based on) and have a nice reserve of taxes paid in the event I stop making money. It does make sense to take the loan out to pay the exercise price if you feel strongly that the stock will at least maintain its value and your loan % is less than the tax % difference. Regards, Brian

To: The Phoenix who wrote (24354)	4/13/1999 1:06:00 AM
From: Jay Couch	Read Replies (2) \| Respond to of 77397

Gary, Actually it makes more sense to take out a loan to pay to exercise - hold for a year and get 20% tax rate as opposed to exercising and selling and paying income tax rates of 36%. Hmm... I guess I never thought of that. Then can you write off the interest on the loan, too?