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Old 10-16-2003, 07:10 PM
Cal Learner-- MVP
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Default Re: ISO Stock Options and adjusting the cost basis

In microsoft.public.money, Charles wrote:

- quote -

> Is it possible to store both the original cost basis for
> a stock (purchase price) while also storing the adjusted
> cost basis required for determining capital gains?


You can store and should store FMV in the Memo of the Buy. Automatic
AMT transfer to tax forms is not produced by Money.


- quote -

> For
> ISO options that have been exercised but not sold, AMT
> tax requires that I pay tax on the stock as if I had
> actually sold it. That effectively adjusts the cost
> basis for tax purposes. Now that I'm actually selling it
> several years later, the only way I can taxable gains is
> to update the orginal purchase price. Am I SOL?


See http://www.fairmark.com/execcomp/isosale.htm

From http://www.irs.gov/pub/irs-pdf/i6251.pdf, it looks like the AMT
income you claimed will go as a negative on Line 16 after you go
through the line 16 worksheet, but I could have mis-read in my quick
look.

The example on page 3 of the 6251 instructions could be more helpful
than it is. See
http://www.google.com/search?hl=en&l...t+sell+line.16
for some more reading on the subject.




  #-1  
Old 10-16-2003, 06:41 PM
Charles
Guest
 
Posts: n/a
Default ISO Stock Options and adjusting the cost basis

Is it possible to store both the original cost basis for
a stock (purchase price) while also storing the adjusted
cost basis required for determining capital gains? For
ISO options that have been exercised but not sold, AMT
tax requires that I pay tax on the stock as if I had
actually sold it. That effectively adjusts the cost
basis for tax purposes. Now that I'm actually selling it
several years later, the only way I can taxable gains is
to update the orginal purchase price. Am I SOL?

Thanks
 

Tags
adjusting, basis, cost, iso, options, stock
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