Quote:
Originally Posted by sammyg2
He may have trouble declaring that income as anything other than short-term capital gains.
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That's the question.
They have every intent to report the short term gains.
What's the cost basis in this scenario.
If they realized $300 on the sale it's not a gain of $300. It's either $100 or $200 depending on how the cost basis is calculated.
It's in their best interest if the cost basis can legally be the value of time put in vs the value of the shares at the time they were issued.