Thanks for the reply.
Definitely no income taxes withheld at time of exercising or anything on the W-2.
Since my exercising/purchase and my selling them happened in the same year, the FMV doesn't matter does it?
Maybe an example is the best way to illustrate it. Numbers aren't the real one, but principle.
February 2022: On exiting the company, I exercised and purchased 50,000 options at $0.20. Paid employer the $10K directly. The FMV at the time was $1.40 per option.
April 2022: Company did a funding round and my stocks were sold at $2.00 each = $100,000.
So, I should now pay short-term capital gains tax on the earnings (i.e. $100K-$10K=$90K).
But the difference between my $0.20 price and the FMV at the time of purchase ($1.40-$0.20=$1.20, total of $60K value increase) is irrelevant since the stock was sold later in the same tax year at a higher price on which I'm already paying taxes on that total gain.
Is that all correct?
