Article Date:
February 2020


Word Count:
3566

 

 

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.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee