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No, that is nothing like bitcoin. Stock options get exercised at fair market value and you immediately owe taxes on the paper profits, even if you never get a c
by seibelj 7y ago
No, that is nothing like bitcoin. Stock options get exercised at fair market value and you immediately owe taxes on the paper profits, even if you never get a cashout. For example, if your strike is 10 cents and when you finally exercise the FMV of the company is $1 per share, you have 90 cents of profit per share even if the company is still private.
Bitcoin is a commodity, if you buy at $10k and the value drops to $5k, you have straight losses. You don’t owe taxes on paper gains unlike the totally ridiculous and insane situation with stock options. The government blows.
- H8crilA 7y agoI meant for people that bought low and then traded around the top. If you switched BTC to, say, ETH around the peak - you created taxable income. Even if you've lost almost everything since then. A buy, full ride up and down to the same level, followed by a sell shouldn't be taxable income.