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brianwawok
on Oct 9, 2015
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Guide to Your Equity
Is $0 legal? I thought normally you gave the stock 1 billionth of a penny of value and paid your $1 in tax.
kenneth
on Oct 9, 2015
[–]
It's legal, not because the stock has no value, but because the spread (i.e. the difference) between the strike price of the option (e.g. $0.01/option) and the stock's value (e.g. $0.01/share) is $0. That's the profit, so that's what you pay tax on.
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