Iso stock options disqualifying disposition
{"Image DocumentName": "Options v. Stock Grants: ISOs", "Image ImageDescription": "An incentive stock option (an ISO ) is a stock option granted to an employee to purchase stock of the employer corporation, its parent or its subsidiary. Numerous tax rules must be satisfied for an option to qualify as an ISO. Generally, ISOs are preferred by optionees (compared to nonstatutory stock options, a.k.a., NSOs ) because of their favorable tax treatment. No taxable income is triggered to the optionee at the time of grant. No taxable income is triggered to the optionee at the time of exercise. However, the spread between the fair market value of the underlying stock and the exercise price would be an item of adjustment for purposes of calculating any alternative minimum tax. If the stock is held for at least 2 years from the date of grant AND at least 1 year from the date of exercise (the Holding Period ), then any gain realized on a subsequent sale of the underlying shares would be taxed at capital gains rates. Neither the grant nor the exercise of an ISO provides the employer with any compensation deduction. 5.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}