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It's not really comparable to how monstrous the tax situation with ISOs are. If you exercise options to buy the stock, you have a tax liability, even though yo
by Simon_says 9y ago
It's not really comparable to how monstrous the tax situation with ISOs are. If you exercise options to buy the stock, you have a tax liability, even though you get no cash from the transaction. It's economically inefficient in the sense that it ties employees to companies that they'd otherwise not continue to work for. This has no analogy to the crypto market.
- Taniwha 9y agoIt's basically the same mechanism that causes the tax liability though, I wasn't arguing for the size of the issue In the stock option case you only get a tax liability if you buy something that's worth more than you paid for it - if you have options, either buy them the day they are granted (and take the risk that you wont stay, or the company will die, etc) and lock in the lower long term capital gains tax, or wait until the day you sell the stock and do an exercise/sell transaction which will likely be taxed at source and end up on your W2, at your full marginal rate. The thing you should not do is the middle thing - buy your stock between these two dates then you'll pick up a tax liability on the capital gains to that point. Talk to someone who understands ISOs and taxes - when you are first granted your stocks and whenever you plan on changing their state