Incentive Stock Options and Executive Compensation
Incentive stock options are unique in that the longer you wait to exercise, the costlier it may be to exercise and hold your shares. That’s not because exercising the ISOs cost more, as that price is fixed, but because the cost of the alternative minimum tax (AMT) may be higher. Most of us …
[Read more...] about Why Waiting to Exercise Your Incentive Stock Options May Increase The AMT
Ready to exercise your incentive stock options (ISOs)? Then you have many strategies to consider for how and when to take the next steps. Potential plans to implement include exercising well before the ISOs are set to expire, exercising as expiration nears, or exercising on a rolling basis (so …
[Read more...] about How and Why to Exercise Your ISOs Early in the Calendar Year
If you try and look up information to learn more about your incentive stock options, most of what you’ll find addresses what happens when you exercise your options -- but doesn’t go much farther than that. You may already know that when you exercise your incentive stock options, or ISOs, the …
[Read more...] about 4 Taxes to Plan for When You Sell Your Incentive Stock Options
In lieu of intentionally exercising for a strategic reason, people tend to hold their incentive stock options right up until the expiration date. At that point, people tend to exercise those options (or ISOs) because they face a “use it or lose it” situation: if they don’t exercise, the option …
[Read more...] about Why an Early Exercise of Your Incentive Stock Options Might Be Your Best Bet
Incentive stock options, or ISOs, are a type of employee stock option. Often considered the favorable employee stock option as compared to non-qualified stock options, they present an opportunity to receive a preferential tax treatment when you exercise and sell the options. To obtain this …
[Read more...] about What is a Disqualifying Disposition of Incentive Stock Options?
