This Tax Trap Can Snag The Savvy

You did a bang-up job of tax planning in 1997. You exercised your incentive stock options (ISOs) instead of taxable nonqualified options. You sped up some expenses in your sideline business to create a net operating loss. You even prepaid state taxes on last year's big capital gains, so you could get that deduction onto your '97 return. So why does your accountant look so glum?

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