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标题: Tax benefit from Stock Options [打印本页]

作者: domani    时间: 2011-7-13 15:21     标题: Tax benefit from Stock Options

Hi,

Can anybody tell me how a company receive tax benefit from stock options? I don't catch this idea. (Book 3- reading 41 - page 571).
作者: Micholien    时间: 2011-7-13 15:21

Thank you for responding my question.

So the tax deduction could be recognized in BOTH income statement and tax return, right? (because you said a bit differently in your explanation and the example)
作者: kamara5    时间: 2011-7-13 15:21

Yes its on both the tax return and the income statement. Its just like an interest tax shield. Higher interest and option-related expense results in lower before tax income so there is a tax benefit.




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