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Midaber

22 karma · joined June 1, 2017

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Midaber··on TLDR Stock Options
There's also another result: negative!

You could owe taxes on money you never saw. Under the AMT rules, if you exercise options at a discounted price, you have to consider the discount as "income". If several years later, when you're ready to sell and the stock is below what you paid for it, you'll still owe the taxes on your discounted price.

Ask your tax person for the details before engaging in any stock option purchase.