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0 pointstoomuchtodo2y ago0 comments

If issued ISOs that are QSBS qualified, no federal tax on the first $10M or 10x your cost basis, whichever is more. 83(b) election is sometimes an option too. RSUs are, as you mentioned, mostly cash comp due to valuation and tax treatment.

(not tax advice, we're just talking lottery ticket mechanics)

0 comments

beambot2y ago

IIRC, you only get QSBS if you (a) exercise to purchase actual shares while the company is QSBS eligible; and (b) hold the resulting stock for 5 full years.

toomuchtodoOP2y ago

Correct. You’ll also want a QSBS attestation letter from the finance team or whomever handles equity admin if the IRS comes knocking. Save it with your options grant documentation.

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0 pointstoomuchtodo2y ago0 comments

(not tax advice, we're just talking lottery ticket mechanics)

0 comments

beambot2y ago

IIRC, you only get QSBS if you (a) exercise to purchase actual shares while the company is QSBS eligible; and (b) hold the resulting stock for 5 full years.

toomuchtodoOP2y ago

Correct. You’ll also want a QSBS attestation letter from the finance team or whomever handles equity admin if the IRS comes knocking. Save it with your options grant documentation.

j / k navigate · click thread line to collapse