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> You pay income tax on the value of your options, and also capital gains tax on the appreciation in their value after vesting. Yes. That was my point. > That
by zombieprocesses 9y ago
> You pay income tax on the value of your options, and also capital gains tax on the appreciation in their value after vesting.
Yes. That was my point.
> That’s only a tax advantage if you get options in a worthless company that later becomes valuable.
What? Since 2010, most large companies had their stock prices double, triple or even more.
> For public companies, you can reap this advantage yourself by buying and holding their stock using your cash compensation.
Except you don't get all your salary upfront.
- 111_1_111 9y ago> Yes. That was my point. No, it wasn't. This is what you said: > Not only do they pay 20% on capital gains instead of nearly 40% on salary That statement is patently false.