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Actually that's not a bad analogy but against your point: options are winning lottery tickets. As long as you don't exchange them for the prize (the actual stoc
by valzam 4y ago
Actually that's not a bad analogy but against your point: options are winning lottery tickets. As long as you don't exchange them for the prize (the actual stock) you are not taxed. When you do, you have to pay tax on the difference between how much the options cost and the value you get back.
- KptMarchewa 4y ago>Actually that's not a bad analogy but against your point: options are winning lottery tickets. They are not unless you exchange them for legal _money_. Not stock. >As long as you don't exchange them for the prize (the actual stock) you are not taxed. Stock is not the prize - it's worth nothing alone, especially if you can't exchange it for mone. For some reason you don't tax unrealized gains on a stock you already owned, yet do the same for illiquid ones. >When you do, you have to pay tax on the difference between how much the options cost and the value you get back. And if you just taxed "at the end" when someone sells the stocks, you'd gain the same amount of money - difference between stock value and 0 - just in a different moment of time. What I propose is logical and it's how it works in Poland.