Running time: 2:12.

To make the most of incentive stock options (ISOs), you must understand their tax fundamentals, explained by the editor-in-chief of in this engaging video. Featuring animated examples, the video covers:

  • the alternative minimum tax (AMT)
  • the beneficial tax treatment of ISOs, which can result in all long-term capital gains income and no ordinary income on your tax return
  • what is needed to receive the special ISO tax treatment and what happens when ISO shares are not held long enough to get it
  • other key facts to know about ISOs

This video builds on the introduction to stock options in the video about core option concepts.