Let's say I'm an employee at a startup where I own fully vested stock options.
I have not exercised my stock options and my startup was bought.
Do I still get to exercise my options? The income tax I have to pay for them will be based on the value the company was bought at?
I have exercised my stock options and my startup was bought.
When I exercise my options, what will my income tax be based on? I assume it's the current value of the company as determined by the IRS. When is that value calculated? I don't think they come up with the new valuation each time someone decides to exercise.
After the company is bought, do I have to pay more taxes on the plus-value between the estimated startup value at the time I exercised vs the price at which it was bought?