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Cover tax implications after exercise when company is acquired at a loss #225

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@slinkp

Example:

  • exercise at strike price $x
  • pay AMT tax on bargain element
  • hold shares n years
  • company acquired for less than overhang, common stock is worth $0

Questions:

  • Is it possible to claim the loss of share value as a deduction or credit for tax purposes?
  • What form(s) used for this? Possibly an 8949?
  • What tax documentation is the company required to provide to shareholders in this scenario? Is it possibly a 1099-B?
  • Is it possible to get any deduction or credit for the AMT previously paid?

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