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With ISOs, at least 2 years must lapse between the grant date and the employee’s sale of the stock, and at least one year must lapse between the exercise date a
by caseyf7 12y ago
With ISOs, at least 2 years must lapse between the grant date and the employee’s sale of the stock, and at least one year must lapse between the exercise date and the sale of the stock. (This is a restriction - not related to capital gain treatment)
If NSOs are granted with a strike price equal to FMV, there are no taxes due until exercise. If granted at a discount, taxes are due on the difference between grant price and FMV.
- ssorallen 12y agoThe only downside there is the 2-year requirement between grant date and sale of stock, but that is unlikely if the company is still granting ISOs rather than RSUs. The second clause of that sentence is standard long term capital gains, which applies to NSOs as well; there's no restriction on either grant type on when you are allowed to sell the stock units once you exercise the option.