3 ms·
Unless you do an 83b election.
by psadri 10y ago
Unless you do an 83b election.
- chatmasta 10y agoCan you do that for ISO?
- joshjkim 10y agoyes, possible to early exercise an ISO and then elect 83(b). however, if you definitely want to early exercise, NSO is preferable since an NSO has more favorable tax treatment wrt to timing: for NSO, long-term capital gain treatment starts one year after exercise, whereas for an ISO you need to wait both one year after exercise AND two years after the option grant date. so, specifically: if you early exercise an ISO on the day it is granted, you have to wait 2 years for LTCG treatment vs. with an NSO, you only have to wait one year after you exercise, even if it's on the date of grant.