Private Company Equity Compensation: A Conversation with Aaron Agte, CFP®
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- Опубликовано: 5 фев 2025
- If you work for a privately-owned company and you have any sort of stock compensation (incentive stock options, non-qualified stock options, restricted stock units, etc.), this live stream is for you. We will dive into the planning considerations at every step of a company's journey.
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my AMT is ~200k, am i going to get taxed heavily this year?
also no liquidity event scheduled.
(57:00) - seems like i fall under this umbrella
I'm assuming you mean your total spread (aka bargain element) is ~$200K. That's figured by (FMV at exercise - strike price) * # of ISOs exercised.
The amount of AMT it creates depends on everything else going on (filing status, household income, etc.), but it'll more-than-likely trigger AMT at that level. A VERY rough scenario of a single person w/ $150K of wage income + $200K of AMT bargain element, it's in the ballpark of $46K of AMT.
For you to understand your particular situation, I would suggest you consult with a tax pro / financial planner that can run estimates for you.
@@JavaWealth exactly; Im worried now about a huge tax bill. IRS will treat me as if I earn 400k a year
Thank you for this video. My husband did a career change into data analytics and started a job with a private company 3 months ago and they just gave him an ISO that we didn't know about. So this video was helpful. I do have 1 question that I'm not clear on. Does he need to exercise all of his options before the company goes public. Is that correct? This is all new to us, thank you for your time.
Hi Shawnda, glad to hear this was helpful.
You can exercise (vested) options anytime before the expiration date, which is commonly 10 years after they are granted to you. It doesn't have to be before the company goes public. In fact, it is sometimes difficult to exercise before going public b/c it often requires you to come up with the cash to pay the exercise cost. Once the company is public, you can do a "cashless exercise" and use some of your ISOs to pay the exercise cost.
I knew a guy who had a couple thousand vested shares and the 5+ billion dollar privately held company self valued them at $0. Then when he left the company they forced a buy back of his for $0.
Now i get a tax form 1099 abcdef whatever 3.30 dollars LOL. I have no idea where ever ? I have no income.