Here are the facts: 2003 stock option-Exchange Existing Shares for Options
2003 option available- 222@17.975
FMV per share@7/29/05=51.78
Surrendered Cert No.11147 77 shares (cost 1585.00)
77 shares x 51.78=$3987.06
3987.06/17.975=221.81(rounded to 222 shares to be issued
222 option shares x 17.975=3990.45
77 cancel shares x 51.78 =3987.06 =Cash due 3.39
In looking at TP 05 return no ISO or Schedule d showing any of this. TP now wants to sell these 222 shares. I think basis is $1585.00 + 3.39 =1588.39. I even checked his W-2 for that year(05)and Wages were not grossed up for the difference.
Would you agree with me? Thanks
2003 option available- 222@17.975
FMV per share@7/29/05=51.78
Surrendered Cert No.11147 77 shares (cost 1585.00)
77 shares x 51.78=$3987.06
3987.06/17.975=221.81(rounded to 222 shares to be issued
222 option shares x 17.975=3990.45
77 cancel shares x 51.78 =3987.06 =Cash due 3.39
In looking at TP 05 return no ISO or Schedule d showing any of this. TP now wants to sell these 222 shares. I think basis is $1585.00 + 3.39 =1588.39. I even checked his W-2 for that year(05)and Wages were not grossed up for the difference.
Would you agree with me? Thanks