Replies to post #144051 on Lightwave Logic Inc (LWLG)

[tedpeele]

Replying to my own post about taxation. Perhaps the IRS views exercised options as a form of income that is immediately taxable. If that is the case if he has been given 50,000 shares at roughly 8 dollars a share he would be taxed immediately on I guess around $400,000. Since tax rates can be close to 50% including everything this could explain the sale that he made.

[Koog]

If he chooses to only exercise his right to buy and decides to not sell why would there be a tax gain?

See: Alternate Minimum Tax (AMT). I exercised and held INTC options when I retired and was hit with a large AMT tax bill.

https://www.irs.gov/taxtopics/tc556