4 ms·

I understand how the law works, but it's quite silly to consider the shares as having value when it's literally impossible to convert them to that "value" to pa

I understand how the law works, but it's quite silly to consider the shares as having value when it's literally impossible to convert them to that "value" to pay the tax. By definition the shares do not have value. It's like if I handed you a coin that I promise is worth one million because I will buy it from you for one million right now, except I won't buy it from you now and I don't plan on buying it from you ever in the foreseeable future, and if I do buy it from you later it won't be for one million.

akhosravian 4y ago
In this context companies aren’t a pinky swear “I promise this has value”. A 10x valuation increase for a private company happens for a reason: for VC funded start ups that is often because they did an up round. Someone else put a lot more money on the line than an employee exercising their options would. I agree with you the current rules kind of suck for employees at start ups increasing in value, but framing values as just made up is overly reductive.
kgwgk 4y ago
> By definition the shares do not have value. Good thing that nobody is forcing you to take ownership of that worthless thing then.