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capital losses on early-purchased stock?
user
yes when exercising a stock option you will be buying the stock at the strike price so you will be putting up your money, if you lose that money you can declare it as a loss like any other transaction. so if the stock is worth $1 and you have 10 options with a strike at $0.50 you will spend $500 when you exercise your options. if you hold those shares and the company is then worth $0 you lost $500. i have not verified my answer so this is solely from my understanding of accounting and finance. please verify with your accountant to be sure.
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