3 ms·
This is a bit ridiculous. Why do you need to pay taxes when exercising the options? At that point one did not made any profit and in fact you made an investmen
by takeda 11y ago
This is a bit ridiculous.
Why do you need to pay taxes when exercising the options? At that point one did not made any profit and in fact you made an investment (you spent money and there's still high chance you might lose to that investment).
It would make much sense to be taxed when you sell the stock (and use the original option price you paid for the shares).
- harryh 11y agoJust because you don't have cash doesn't mean you don't have an asset that has value. If I give you a house, you don't have cash, but you still have to pay taxes on the gift. I do agree that there is some degree of ridiculosity and there should probably be some tax reform here, but that is the reasoning behind the current rules.
- takeda 11y agoSigh... it really needs to be reformed, you essentially can lose money twice on such investment.