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Is the tax assessed on options/grants even if there isn't a market to sell them?
by qppo 6y ago
Is the tax assessed on options/grants even if there isn't a market to sell them?
- dgoldstein0 6y agoIt probably depends on how those options and grants vest. Earlier stage companies are more likely to set them up so that they vest at IPO.
- danans 6y agoIf there is no market, either because it is pre-IPO or unvested then the value is unrealized, and therefore not a form of compensation, so no. You don't own equity that haven't vested. They are just a contract between you and the employer to transfer them to you upon vest, which either party can probably walk back on if they choose to.