jlevy/og-equity-compensation

Cover tax implications after exercise when company is acquired at a loss

slinkp opened this issue · 1 comments

slinkp commented

Example:

  • exercise at strike price $x
  • pay AMT tax on bargain element
  • hold shares n years
  • company acquired for less than overhang, common stock is worth $0

Questions:

  • Is it possible to claim the loss of share value as a deduction or credit for tax purposes?
  • What form(s) used for this? Possibly an 8949?
  • What tax documentation is the company required to provide to shareholders in this scenario? Is it possibly a 1099-B?
  • Is it possible to get any deduction or credit for the AMT previously paid?
slinkp commented

I think this is not the same as #79 because it's neither early exercise nor section 1244