[s17n]

This is a problem for startup employees, too, and should be solved in both cases by allowing you to defer the taxes on your paper gains until you can actually realize them (yeah, there would be issues here, but the issues are solvable).

[mathraki]

That's exactly what capital gains taxes are tho?

[s17n]

Exercising your options is a taxable event even if the shares you're buying are illiquid.

[metzby]

I thought capital gains were when you do realize them, not when you can realize them.