When is compensation for stock options considered received?

September 15, 2006

Date:   Fri, 14 Jul 2006
From:   John


Would you say that a person who is granted options on January 1, 2000 and exercises and sells on January 1, 2005 receives compensation on January 1, 2005 or January 1, 2000?


Date:   09 Aug 2006

Hello John,

Assuming the options are non-qualified stock options, fully vested on January 1, 2005, that is the date that taxable compensation is received.

Good luck!

Mike Gray

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