3 ms·
If you are arguing that grants of options shouldn't be taxed -- they are not. If you are arguing that the eventual income from ISO's shouldn't be taxed -- that
by URSpider94 9y ago
If you are arguing that grants of options shouldn't be taxed -- they are not.
If you are arguing that the eventual income from ISO's shouldn't be taxed -- that would be a very odd position, since pretty much every form of income out there in the world is taxed, even illegal income. I can't think of any other income category that is un-taxed under USA tax laws, with the exception of government bonds.
- walshemj 9y agoWe are talking about capital gains and not income most companies we are talking about don't pay dividends.
- URSpider94 9y agoCapital gains are considered "taxable income" by the IRS. I'm fully aware that the profit from ISO's is from cap gains, not dividends. Source: http://www.taxpolicycenter.org/briefing-book/how-are-capital-gains-taxed http://www.taxpolicycenter.org/briefing-book/how-are-capital...
- deathanatos 9y agoExercising of options is taxed, which is what I interpreted the OP to be talking about. From the employee's perspective, it seems ridiculous: I'm exercising an option in hopes of future payout, but right now, it's worth literally $0 — I can't convert it to cash — but the government taxes it at >$0 nonetheless.