Tax Center Global Tax Guide / Glossary / Discussion / About Us
Register Log In
myRecordsmyToolsmyClients
Pre-IPO: Early-Exercise Options

NEW! Unexpected Risks Of Early-Exercise Stock Options This is premium content

Terence Kelly and Jamison Klang
Companies grant early-exercise stock options mainly to limit the taxes you will pay at exercise or later at the sale of the stock. However, these options can have negative tax consequences in a disqualifying disposition (e.g. an early sale). This article reviews the tax effects of early-exercise incentive stock options and compares the tax results to those of early-exercise nonqualified stock options.
For access to this article, please sign in or register.
Not Yet a Member?

This feature is a benefit of Premium membership.

Registering as a Premium member will give you complete access to our award-winning content and tools on stock options, restricted stock/RSUs, SARs, and ESPPs.

Who becomes a Premium Member? See our long list of paid subscribers.

Are you a financial or wealth advisor? Learn more about MSO Pro Membership.

View Homepage

Questions or comments? Email support or call (617) 734-1979.