Taxation of equity is complex. The more accurate your grant information is, the better your tax estimation will be.
Our customers often ask why they need to provide vesting and exercise information when using our tools or seeking financing and advice, even if all of their options have been exercised.
Taxation of equity is complex and depends on various factors, such as the type of grant, where your stocks vest, and current place of residence among others. By providing complete and accurate information about your grants, we can provide you with a more precise tax estimation.
For example, with ISOs, you can receive a significant tax discount if you exercise them at least 12 months before selling and refrain from selling them within 24 months after being granted. Knowing when your options were granted and when you exercised them is imperative to figure out how much taxes you owe, even if you have exercised all your options.
Here is a collection to help you learn more about how equity is taxed.