Article Date:
February 2020

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Know This About Employer-Issued Incentive Stock Options (ISOs)

As we mentioned in the other article referenced below, employer stock options remain a potentially valuable asset for recipient employees, especially when they work for startups or growing enterprises.


For example, many Silicon Valley millionaires got rich (or at least semi-rich) from exercising their employer stock options.


Complicated tax rules apply to folks who exercise company stock options. And when the market goes south, you can wind up owing income tax on paper gains that have literally vanished.


This analysis summarizes the federal income and employment tax rules for ISOs and also suggests some planning strategies. Here goes.


Tax Planning Objectives


You will eventually sell shares acquired by exercising ISOs, hopefully for a healthy profit. Your tax planning objectives are ... Log in to view full article.

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