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/biz/ - Business & Finance


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23423483 No.23423483 [Reply] [Original]

can someone explain to me this jewish nonsense?

My company has given my some stock options and the stock is doing pretty well right now, to the point where there's nearly a $200 differential between the option price and market value. I want to exercise my shares so that for each one I sell I make the difference back in cash but it looks like it's being taxed at fucking 40%. What the fuck?

>> No.23423546
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23423546

what the absolute FUCK

why is it so high? It looks like there's no way to do a same day sale at a lower federal tax rate?

>> No.23423680

what the frick is going on here?

>> No.23423692

>>23423680
I am trying to exercise stock options and I'm wondering why the tax rate is double my income tax rate

>> No.23423732

>>23423692
This is some weird american shit im just helping you bump bro

>> No.23423827

>>23423732
thanks fren

>> No.23423859

what if you try selling the options instead of exercising them?

>> No.23423891
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23423891

>>23423859
doesn't seem like there's an option to directly in etrade

>> No.23424055
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23424055

OK, it seems that the only way forward is to save up a shitload of cash, buy my options outright, hold onto them for a year, and then still have to pay 9% in NYS capital gains tax.

In order to wait until all my options vest, and to buy them outright, I'll need $50k in cash in Sep 2022 and cannot sell until Sep 2023. And who the fuck knows what the market value will be then.

>> No.23424175

>>23423483
Its taxed as income nooblet

>> No.23424200
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23424200

>>23424055
Oh wait, it's even worse... since my wife isn't some dumb broke slut we make too much on our combined income to even be qualified for 0% federal tax on long term capital gains. That means we'd need to do some dumb thing like dump her entire fucking income into a 401k in order to be under $40k with the standard deductible and even then it's probably not possible once the capital gains are counted as income putting us above the $40k income threshold.

why the fuck does anyone support more taxation?

>> No.23424201

>>23423546
it ain't called jew york for nothin, goy!

>> No.23424212

Instead of selling them and realizing the capital gain you can take out a securities loan using them as collateral

>> No.23424243

>>23424200
Wow and you burgers say euroboys are cucked??

>> No.23424255

>>23424200
>dump her entire income in 401k
Wow you really are a new fag. How did you get Given options kek

>> No.23424267

>>23424175
but my income tax rate is not 40%. It's 22%.

>> No.23424401

>>23424267
So can't you just claim it on your tax statement and get refunded the difference? That's how it works over here.

>> No.23424423

>>23424401
I probably will but I don't want to have that much witheld in the first place. I guess I should just call the person at my company who decides the witholding rate for stock option exercises. Holy fuck.

>> No.23424515

>>23424423
I never knew that some systems automatically withhold from your gains. Seems odd and inefficient.

>> No.23424556

>>23424515
It's so that you can't "accidentally" "forgot" to report them.

>> No.23424713

>>23424556
let's make a hypothetical scenario where I'm a lot more retarded than I already appear and my company didn't do anything to stop me from hurting myself. So I make $10k on selling stock. My company doesn't regulate the sale since I would be buying the stock outright and just selling on the market as a free citizen. When I use turbo tax next year I am so retarded that I do exactly as you suggest and accidentally forget to claim anything outside of my W2. In this scenario I am entirely fucking retarded. NOT attempting to hide my income. So I only pay taxes on my income and bonuses and my stock sale doesn't get taxed at all.

So then IRS comes knocking at my door for an audit. They check my finances and see a $10k deposit into my checking account from etrade that wasn't on my yearly filing. What happens next?

a) I have to pay the missing taxes and I get to say I'm sorry
b) I get royally fucked in the ass and go to prison

>> No.23424826

>>23424713
The NSA has already informed the IRS you made this post so B

>> No.23424847

>>23424826
kek that's what I thought. Man I have no idea why people even fucking attempt tax evasion. There's no escape.

>> No.23425400

>>23424847
This is clown world fren, the more money you have the easier it becomes to avoid taxes. I think people get away with it by hiring accountants who are specialists in evasion.

>> No.23426128

>>23424847
If everyone evades taxes one year. Then what? Put us all in prison for free. Kek. Pay your taxes faggot, this is the America you're complicit with.

>> No.23426529

>>23423692
dude just go exercise at the gym like a normal person lmao

>> No.23427084

>>23424055
Kek, you didn't think the government would let you make it did you anon?

>> No.23427098

>>23424055
Oh, and be careful not to trigger AMT with your newfound wealth

>> No.23427134

>>23424713
C. You have to pay taxes plus penalties