[ExI] Mathematical Help with Bitcoin historical curve future projection? (was re: Long Term Bitcoin Catastrophe)

[Gordon]

spike <spike at rainier66.com> wrote:


>This may sound like an exaggeration, but it isn't.  I have a young friend

>who in 1996 was paid 24k and the rest of his 200k salary was paid in
>options.  The above scenario played out, his 200k$ in options became
>valueless, he ended up with income tax bills totaling over 60k in a year in
>which he only earned 24k, most of which went for apartment rental.  He and
>all his colleagues practically lived in that office, but all went bust from
>being paid in toxic assets. 

That doesn't sound right. Perhaps your friend found himself in a unique situation, but in general employee stock options are not taxed until they are exercised.

"Because most employee stock options are non-transferable, are not immediately exercisable although they can be readily hedged to reduce risk, the IRS considers that their 'fair market value' cannot be 'readily determined', and therefore 'no taxable event' occurs when an employee receives an option grant."

http://en.wikipedia.org/wiki/Employee_stock_option#Taxation

Gordon
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