ISOs

Incentive stock options (ISOs) are potentially quite valuable. However, they are more rule-bound, complex, and risky than nonqualified stock options (NQSOs). In fact, mistakes with ISOs can be quite costly. This article presents five key aspects of ISOs that you must know at the time of grant, before you exercise the options, and when you sell the shares.

Incentive stock option (ISO) exercises made during a calendar year are reported to you and the IRS on Form 3921 early in the following year. This article explains what you need to know about the information on the form, and how the form can help you better understand the complexities of ISO taxation.

Learn how and when income from ISOs is subject to taxes, including the alternative minimum tax. You must consider taxes at both exercise and sale to put together an optimal strategy.

With ISOs, it is always the sale that triggers taxes. The rules are similar to those that apply to sales of ISO shares made in the same year as exercise; the difference is that...

To report the sale of shares in a sell-to-cover exercise, you complete Form 8949 along with Schedule D for the year of...

The calculation of the amount of ordinary income and capital gain/loss will vary according to the...

IRS/Treasury regulations on ISOs clarify that the amount of ordinary income in a disqualifying disposition is...

An incentive stock option (ISO) is a type of stock option that qualifies for special tax treatment...

Companies in the United States can grant two types of stock options: nonqualified stock options (NQSOs), the most common type, and incentive stock options (ISOs). The table in this FAQ summarizes and compares the major traits...

With incentive stock options (ISOs), when you hold the shares for more than one year from exercise and two years from grant, the entire gain at sale over the exercise price is...

After you have held the stock more than two years from grant and one year from exercise, the spread between the exercise price and the sale price is...