Re:Guide to Your Equity
by brianwawok on Friday October 09, 2015 @05:57PM
(#10363495)
Is $0 legal? I thought normally you gave the stock 1 billionth of a penny of value and paid your $1 in tax.
[ Parent
| on HN ]
It's legal, not because the stock has no value, but because the spread (i.e. the difference) between the strike price of the option (e.g. $0.01/option) and the stock's value (e.g. $0.01/share) is $0. That's the profit, so that's what you pay tax on.