asked

I am a private company employee with 40k qualified stock options granted at $5, exercisable at 10k after a year, requiring $50k out of pocket. With the company valuation at $15 per share, I would need to pay tax on $(15-5)*10000=$100,000 at the LTCG rate. If shares are trading at $20 on a private market platform like Hive, do I use that price or the company valuation price for tax purposes? Is this tax loss recoverable against future AMT? How can I mitigate this tax hit, and if I hold the shares for a year, can I sell them at regular LTCG?

November 3rd, 2024

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