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The dark side is probably the equity - how to actually cash out on that. For example, employees at Gilt were expecting an IPO and then eventually it got acquir
by fouc 8y ago
The dark side is probably the equity - how to actually cash out on that. For example, employees at Gilt were expecting an IPO and then eventually it got acquired by another company and devalued their stock, yet they paid taxes on the earlier value of it, and ended up losing money.
- jacknews 8y agoAssuming you get any? There are plenty of 'startups' that offer none.
- deleted 8y ago[deleted]
- deleted 8y ago[deleted]
- jimmaswell 8y agoWhy wasn't that a capital loss?
- toomuchtodo 8y agoYou're still on the hook for the taxes upfront when you exercise, and you're going to deduct $3k/year of that investment loss off your taxes until you die. https://github.com/jlevy/og-equity-compensation#taxes-on-stock-and-options https://github.com/jlevy/og-equity-compensation#taxes-on-sto...
- closeparen 8y agoCapital losses offset capital gains, not earned income (except very slowly). They protect investors, not equity-compensated employees.
- jimmaswell 8y agoSo if you get a million dollars of equity, and it devalues to $10 before you cash it out, you have to pay taxes on the million? That's insane.