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he can't pay income tax if he's never received the income. "I will be left with a tax bill on $10,000s of additional "income" that I never received"
by emcrazyone 12y ago
he can't pay income tax if he's never received the income.
"I will be left with a tax bill on $10,000s of additional "income" that I never received"
- davidu 12y agoActually, and unfortunately, in the US, that's how it works. His paper gains are taxed. It's not quite "income" but it's taxed that way.
- deleted 12y ago[deleted]
- limeyx 12y agoThat actually depends on if the options were ISO's (where you'd only have to account for the spread in AMT calculations) or non-Quals where yes you'd have to pay regular tax on the spread at exercise time. If he's really a founding engineer though he should have filed an IRS 83B election and basically paid close to zero tax on all this
- davidu 12y agoCorrect.