3 ms·

I don't understand how employees can get screwed with ISOs from a tax liability stand point. ISOs are not taxable until a capital gain is realized i.e. exercise

by bertm 13y ago

I don't understand how employees can get screwed with ISOs from a tax liability stand point. ISOs are not taxable until a capital gain is realized i.e. exercise and sale. Are you referring to non-qualified stock options?

lanstein 13y ago
"There is a catch with Incentive Stock Options, however: you do have to report that bargain element as taxable compensation for Alternative Minimum Tax (AMT) purposes in the year you exercise the options (unless you sell the stock in the same year). We'll explain more about the AMT later." http://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Incentive-Stock-Options/INF12049.html http://turbotax.intuit.com/tax-tools/tax-tips/Investments-an...