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A comment on EVGA terminates Nvidia partnership [video]. Parent comment

Re:EVGA terminates Nvidia partnership [video] by iepathos on Friday September 16, 2022 @05:22PM (#32872164)
Similarly, taxes are applied to capital gains when stock is sold, not when it is received or bought. The employees would not be taxed just for receiving the stock/ownership, only once they sold it and made it liquid.
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Re:EVGA terminates Nvidia partnership [video] by googlryas on Friday September 16, 2022 @05:32PM (#32872258)
You're taxed for the value of the stock when you receive it, and you are taxed on capital gains when you sell it, if you're selling it for more than you received it.
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Re:EVGA terminates Nvidia partnership [video] by girvo on Friday September 16, 2022 @05:29PM (#32872239)
No, you can absolutely be taxed just for receiving the stock/ownership.
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Re:EVGA terminates Nvidia partnership [video] by ideamotor on Friday September 16, 2022 @06:06PM (#32872604)
If it’s not worth much and it’s spread across many employees, we aren’t talking about much.
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Re:EVGA terminates Nvidia partnership [video] by NavinF on Friday September 16, 2022 @07:05PM (#32873176)
Wrong. It will be valued at something ridiculous like 20x EBITDA (average for tech related companies) and you'll be taxed on that number.
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Re:EVGA terminates Nvidia partnership [video] by ideamotor on Friday September 16, 2022 @07:47PM (#32873479)
Doesn’t that depend on who values it? Also, I get the impression they have quite a few liabilities.
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Re:EVGA terminates Nvidia partnership [video] by NavinF on Saturday September 17, 2022 @01:13AM (#32874944)
In the GN interview they said they have plenty of cash.

I'm sure they'll have to write down a lot of inventory because prices went down, but for tax purposes their valuation is still going to be very high based on earnings. That's why private companies other than startups rarely go this route.

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Re:EVGA terminates Nvidia partnership [video] by double_nan on Friday September 16, 2022 @05:29PM (#32872237)
Taxes are due at vesting.
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Re:EVGA terminates Nvidia partnership [video] by davidlumley on Friday September 16, 2022 @06:55PM (#32873074)
To be clear: taxes are due when you receive the shares. For options, that's when you execute/purchase your options not when they vest.

edit: (in the US at least)

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Re:EVGA terminates Nvidia partnership [video] by johnebgd on Friday September 16, 2022 @09:28PM (#32873991)
The taxes can also be due when you receive your options. That can depend on if you purchase your options or if they are granted to you and entitle you to a discount.

YMMV but an NQSO purchase agreement can be your friend.

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