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Can someone explain how the taxable amount would be calculated if the company isn't listed on the stock market. My options are for value x per share. I would ex
by ajmurmann 9y ago
Can someone explain how the taxable amount would be calculated if the company isn't listed on the stock market. My options are for value x per share. I would expect to pay taxes for y - x with y being the market value. How does the actual market value get established? Will that number just come from what was used when someone invested previously?
- buckhx 9y agoFair Market Value determined by a 409a valuation.
- bgentry 9y agoInteresting side note. This proposed legislation actually completely removes section 409A from the tax code and replaces some parts of it. I’m not sure if the rules around company valuation will change dramatically but it seems that they won’t be called 409A valuations anymore if this passes: http://bakerxchange.com/rv/ff0034eed7a7d447f644f491d94caddcbfd115c7 http://bakerxchange.com/rv/ff0034eed7a7d447f644f491d94caddcb...