sjrcpa
Level 15
04-22-2021
09:30 AM
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The options he received, exercised and sold are taxable compensation equal to the excess of the value over the amount he paid for them, if anything..
I don't see why it wouldn't be subject to SE tax. If he was an employee it would be W-2 compensation subject to SS & Medicare tax.
His capital gain or loss equals the sale price minus the taxable compensation minus what he paid.
The more I know the more I don’t know.