can someone explain why startup options have nonzero strike price
Show this thread
The IRS exempts options from taxes only if the co. grants them at a strike px equal to the "fair market value" of the stock at the time of the grant By law private cos. have to prove that the FMV is "reasonable". Usually a 3rd party performs this analysis in a 409A valuation
-
-
I think you’re exempt from paying taxes as ordinary income only if strike price = FMV at exercise, not grant.
-
Signed, a guy who thought he had a six-figure tax bill based an updated 409a.
- Show replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.