3 ms·

Salary doesn't come into play when calculating gains taxes in the USA. In other words, the article has it correct.

• jMyles 10y ago
  Wow. That's terrible. My gains tax for 2017 just went up. :-) So, what if you work 100% for equity? Even then, you don't get to declare any part of that?
  • ska 10y ago
    Declare as what? It's treated as income - you declare it, and you pay tax on it.
    • jMyles 10y ago
      I meant declare as part of the cost basis. IE, if you are paid $5000 / week and you can optionally take $1000 of that as options, and you do so, why doesn't that $1000 become part of your cost basis?
      • tdiggity 10y ago
        That's just one of the problems with the whole stock options tax rules. You really have to pay to play (triple taxation!), and it makes the golden handcuffs so much more more worse. You see a lot of people doing short term sales because they can't afford to hold onto the stock for a year and take the AMT hit.
      • ska 10y ago
        Ah I see - that's not how it works currently, but I can see why one might wish it did.