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The alternative is that the tax is entirely on exercise of the option.
by richardwhiuk 9y ago
The alternative is that the tax is entirely on exercise of the option.
- walshemj 9y agosurly on the liquidity event when you exercise the options with out selling you have not received any income or CGT yet. What tax CGT or Income and in the UK an approved scheme is tax fee in effect - this is to encourage employees share ownership
- URSpider94 9y agoIt IS entirely on the exercise of the option. Granting and vesting of ISO's are not taxable events. Exercise of ISO's is taxable under the AMT rules, but only if you are above the AMT threshold (admittedly, this is true for a lot of people) If you're not hitting the AMT threshold, then you only pay tax when you sell the resulting shares.
- TheCoelacanth 9y agoWouldn't another alternative be for the tax to be entirely when the underlying stock is sold?