3 ms·
Exercising options has tax consequences.
by joshuamorton 7y ago
Exercising options has tax consequences.
- jsh123 7y agoDepends if you signed 83b or not. If you’re early you should always do that.
- fossuser 7y agoYou can't always, not all companies allow early exercise. If you've been at a private company for a while you may have options that have vested approaching the ten year expiration with a large spread between strike and the fair market value. If these options are ISOs then exercise has a lot of tax consequences to get right (AMT particularly to save some money). If you have NSOs you've still got a lot of tax to deal with on exercise, but you don't have to benefit of getting some tax free below AMT.