Celebrating 10 years! 2007-2017

So, I have this friend/sometimes client who is freaking out

He sold a bunch of stock options last year and his company u wutwutwut03/04/19
I'm not a tax guy, but "no" surely has to be the correct ans jeffm03/04/19
You mean he exercised the option and sold the stock? Or was guyingorillasuit03/04/19
Nothing convoluted, just exercised & sold so the gain betwee wutwutwut03/05/19
The loss is indeed on your client. He needs to consult a CPA guyingorillasuit03/05/19
No doubt somewhere in his contract, the company handbook, th therewillbeblood03/05/19
The L is on your client. Doesn't matter that the company und isthisit03/05/19
Solid lolz from this one. I am guessing he spend the money o triplesix03/06/19
wutwutwut (Mar 4, 2019 - 10:34 pm)

He sold a bunch of stock options last year and his company under-withheld by a big margin.

I don't think it matters that his corp screwed up. He owes what he owes, right? There's no recourse against his corp for under-withholding, is thwre?

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jeffm (Mar 4, 2019 - 10:59 pm)

I'm not a tax guy, but "no" surely has to be the correct answer. What would be the measure of damages? He had the use of money it should not have had. Now, he has to give it up.

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guyingorillasuit (Mar 4, 2019 - 11:14 pm)

You mean he exercised the option and sold the stock? Or was there some convoluted transaction on the private market? Did he take an 83(b) election?

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wutwutwut (Mar 5, 2019 - 7:25 am)

Nothing convoluted, just exercised & sold so the gain between option price and market is ordinary income tax rate.

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guyingorillasuit (Mar 5, 2019 - 7:53 pm)

The loss is indeed on your client. He needs to consult a CPA. I assume you are talking about an NSO, so there could be capital gains in addition to ordinary income tax, as I understand it. I may be wrong.

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therewillbeblood (Mar 5, 2019 - 10:37 am)

No doubt somewhere in his contract, the company handbook, the options paperwork, etc. is a line that the company doesn't take responsibility for proper withholding and it's his responsibility to figure it out.

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isthisit (Mar 5, 2019 - 3:11 pm)

The L is on your client. Doesn't matter that the company under withheld.

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triplesix (Mar 6, 2019 - 4:04 pm)

Solid lolz from this one. I am guessing he spend the money on da boat too haha

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