Re:Startup Stock Options – Why a Good Deal Has Gone Bad
by bgentry on Wednesday April 10, 2019 @12:05PM
(#19626034)
I think we're saying the same thing.
If I early exercise my options on day 1, then I still have to wait until the 2 years after the grant date (2 years of employment) to get long term capital gains treatment.
If I wait 4 years, then exercise, then I have already satisfied the 2 years post-grant requirement, but I still have to wait a year after the exercise to get long term capital gains treatment.
The key part was my last clause: "whichever is later".
If I early exercise my options on day 1, then I still have to wait until the 2 years after the grant date (2 years of employment) to get long term capital gains treatment.
If I wait 4 years, then exercise, then I have already satisfied the 2 years post-grant requirement, but I still have to wait a year after the exercise to get long term capital gains treatment.
The key part was my last clause: "whichever is later".