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Doesn't exercising an option in the US count against Alternative Minimum Tax but not regular taxes? And doesn't AMT have an exemption amount so you don't pay ta
by marcinzm 7y ago
Doesn't exercising an option in the US count against Alternative Minimum Tax but not regular taxes? And doesn't AMT have an exemption amount so you don't pay taxes if you're below it?
edit: Also, does the fair market value in Germany "undervalue" startups the same way the 409A valuation does in the US? If not then that would increase the taxable amount by a lot and also lowers the upside since it increases the strike price.
- Myrmornis 7y ago> Doesn't exercising an option in the US count against Alternative Minimum Tax but not regular taxes? And doesn't AMT have an exemption amount so you don't pay taxes if you're below it? Not in my experience. Basically it ends up that the difference between exercise and strike is taxed as income.