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Subject:   New House Bill Favors NQSO
Date:   Fri, 30 Jun 2000
From:   John

Hi,

I heard of a recently introduced House Bill that would enable gain on exercise of NQSO to be treated as Capital gain rather than today's ordinary income. Have you any information on the status of this Bill?

John

Answer

Date:   28 Jul 2000

Hello John,

The only bill I can think of that fits your description is the Super Employee Stock Option legislation.

The legislation is intended to make the benefits of incentive stock options available to a broader employee group without the AMT "sting."

It’s getting press coverage but I don’t expect it to be enacted this year.

Good luck!

Mike Gray

For more information about non-qualified stock options, request our free report, Non-Qualified Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.