I had gotten a few shares of a company I used to work for. Unfortunately the time period to exercise the contract is just 90 days after I leave so that means either I have to lose all the shares since I didn't complete the whole vesting schedule or buy it from them!
I wanted to understand how the tax works in a case like this! The company is still not traded so I can't sell the shares but have to buy it and hold it until IPO!
if you exercise ESOPs they become shares under your name. you have to pay taxes on
(no. of ESOPs you want to exercise)*(FMV - strike price).
FMV is usually share value as per the recent most valuation.
If I'm not wrong STCG is taxed the same as Income Tax.
I’ve not exercised my ESOPs from my previous employer. I am waiting for the company to go public. I quit the company in 2021. What will my tax be if I exercise and sell my stocks at the time of IPO? How much tax can I save if I buy a pro...
Hi, Say a Series B (US) funded startup gives me 3000 shares which are worth $5/share. It follows the usual vesting period of 4 years. Now assume 4 years have passed and all the 3000 shares are vested but the company hasn't gone IPO.
He...
What happens to unexercised ESOP after IPO? I got to know that ESOP gets taxed at the time of exercise so it could lead to a huge financial burden. Also, is it possible to defer taxes after exercising of esops?
So say one has 100 ESOPs which a person exercised and converted to say 1000 shares in say Jan 2024
Now if IPO happens in aug 2024, what will be the long term capital gains tax rate for these shares.
Will the tax rate change if one sel...
So i got the ESOPs in my current company and now they want me to exercise it as it is mandatory to exercise the ESOP in a certain period of time. What will happen once I exercise it?? Also i am thinking of quitting the company so what wi...
