Question:
Why
doesn't the number of shares exercised on my Tax Accounting report (Tax Benefit
Reconciliation in Equity Edge) match the number of exercises on the Exercise
report?
Answer:
If you
have ISOs, this is usually the culprit. As I'm sure you all know already, ISO
exercises do not produce a tax deduction for the company. Their DISPOSITION (if
it is disqualifying), produces the tax deduction, and therefore their
disposition, not exercise, appears on this report. So if you try to match
exercises from the exercise report to exercises from a tax accounting
report, this is often the reason for the mismatch.
