Has anyone had any experience with the purchase of unlisted share options?
I have options on 10,000 shares. I have to purchase the options by the middle of next month (March 2008). The shares are going to cost me $2 each and are currently valued at over $20 each. For tax purposes I need to treat the difference in value as income in the year that the options are purchased. So, instead of just having to find $20,000 for the purchase, I am also going to be up for income tax on about $200,000 (assuming that the current value of each share is $22, then [22x10,000] - [2x10,000] = 200,000). I currently earn around $80,000 pa so am expecting the tax on the shares to be around $90,000.
The company has been consistently doing well and I am comfortable with the risk. However, I am unable to trade any of the shares and an IPO is not yet on the horizon, meaning I will have to borrow money in order to meet my tax commitments. I was wondering whether there is any way I am able to reduce the tax, defer the tax or spread it over a greater time period. Any advice would be greatly appreciated.