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Why wasn't that a capital loss?
by jimmaswell 8y ago
Why 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.