Hi Team
I have a question.
• I was granted 1000 share options at strike price of $7.00.
• I exercised the shares at $100 market price
• Interest rates started rising and the share market fell, share price went to $40
• I sold 1000 shares at $40, 6 months later
What is the actual discount from deferral scheme in this case?
I got a statement saying that the total deferred discount is $93*1000 = $93,000 and this should be reported as part of my tax return.
This is a unique case as the share market fell by more than 50%. The actual discount i received was only $33*1000 = $33,000.
It seems a little unfair and ridiculous for me to pay tax on unrealised total discounts for $93,000 when in reality the discount received / income was only $33,000
It is not everyday the share market tanks as interest rates have been at an all time high.
What should be the correct discount amount for my tax return in this case?
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