4 ms·
It may make no sense, but the IRS disagrees with you. Exercising is a taxable event.
by bhickey 10y ago
It may make no sense, but the IRS disagrees with you. Exercising is a taxable event.
- theli0nheart 10y agoThat's only for ISOs, which are essentially deferred compensation. Getting paid in ISOs is functionally equivalent to taking an 83(b) election in that you're trading a risk of potential loss for the upside of only needing to pay long term capital gains tax.
- twblalock 10y agoYou are confused. Exercise of incentive stock options (ISOs) is not a taxable event, although you may get hit with the AMT. Exercise of non-qualified options (NSOs) is a taxable event. For both types of options, the sale of the stocks at a later time is taxable.
- limeyx 10y ago^ - this.