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> For example: one early engineer at Zenefits had to pay $100,000 in taxes for exercising his stock....and then all the crap hit the fan, and he likely paid mor
by Eridrus 10y ago
> For example: one early engineer at Zenefits had to pay $100,000 in taxes for exercising his stock....and then all the crap hit the fan, and he likely paid more in taxes than his shares will end up being worth. Ouch.
Would this bill actually help this scenario? I'm unclear if deferring the tax liability just means that you pay the same amount of tax later, or if you can write off capital losses like this at the time your liability is due.
- aqme28 10y agoThis bill reduces the main reason that employees exercise their options "early" while they're still illiquid. The employee likely wouldn't have paid that money until there was an actual liquidity event.