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Actually, 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.
by davidu 12y ago
Actually, 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.