thruhiker
Joined 10 years ago
Joined 10 years ago
Exercising ISOs does not generate taxable income nor immediate capital gains when the option is exercised, but you will generate capital gains in the future on the difference between the sold price and the strike price when you sell your exercised options. If you are higher income, which is common if you work for a startup on the product and engineering teams, the difference between the strike price and the FMV when exercising the option counts towards AMT calculations.
It's common to pay AMT when exercising ISOs but you do generate AMT credits that can be used in future tax years when your taxable income and capital gains are below the threshold for triggering AMT.
Carta has a great article on ISOs vs NSOs that goes into more detail: https://carta.com/blog/equity-101-exercising-and-taxes/
Also this title is clickbait, no one forced this person to pay anything. Walking away from equity for free is always an option that some people take.
Would I recommend the 8GB of RAM to someone who wants to use it as their primary development machine or for heavy photo editing, absolutely not. Would I say it's OK for casual use, yes.
Do I think Apple is being stingy considering their incremental cost for an extra 4GB or 8GB of RAM in the base model would be tiny, yes.