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Thursday, June 23, 2022 5:32:16 PM
Dont need to check with an accountant, been through it dozens of times with experts
Here, maybe this simple illustration can shed some light
The spread (the difference between the stock price when you exercised and your strike price) will be taxed as ordinary income. Because Meetly (our example company) let you buy the stock for $1 at a time when the fair market value had risen to $5, it’s almost like they paid you that $4 difference, along with your income and salary.
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