I am a dual US/UK citizen, permanently resident in the UK.

I have a job offer which includes EMI (Enterprise Management Incentives), also known as share options.

As a US citizen, I have to file a US tax return. Please can someone explain the US tax implications/filing complexities of owning/exercising an EMI.

I should mention that the option is 'currently valued at' less than 10% of my salary, so it's a nice perk, but not the biggest part of the deal.

  • I don't know if it helps, but (in the USA) the types of "option deals" offered (very typically in "valley software startup" situations) are incredibly varied. (A) Folks are often utterly ripped-off by not knowing what the hell a waterfall is (or whatever), but for this list (B) it's pretty common someone asks on here "tax implications of my options" and, the answer would vary enormously depending on the bewildering variety of deals offered by startups/companies :O
    – Fattie
    Aug 20 '20 at 14:44
  • I have no clue if in the UK deals are more "standardized"
    – Fattie
    Aug 20 '20 at 14:45
  • Yes - I have filed US returns every year. I was resident in the US for 4 years in the 2000s. Aug 20 '20 at 14:46
  • 1
    @Fattie, thanks. But this is a 'standard' deal - the link is to the UK gov site explaining how it works. Essentially I get an 'option' to buy a particular number of shares at a fixed value at a point in the future. I can either pay the money to buy the shares, or immediately buy-and-sell and take the capital gain. Aug 20 '20 at 14:48
  • makes sense; very interesting!! Indeed as you say we now know precisely the formula. Hopefully there's a top expert in US (/overseas element) options taxes here!
    – Fattie
    Aug 20 '20 at 14:59

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