Incentive Stock Options Exercising Them Properly!
With this incentive stock option, once your employer provides you with a summary plan and you sign the agreement, you are entitled, under the plan, to exercise your options and buy stock.
In order to exercise your incentive stock option you must be an employee from the date the grant was offered until 3 months before the date of exercise.
Incentive Stock Option- Tax Treatment
The employee does not have to pay income taxes on the difference between the exercise price and the fair market value.
If you decide to hold the stock for 1 year from the date of exercise and 2 years from the date of granting, your profit will be taxed as long-term capital gain.
Since Joe Mastriano P.C. deals with the IRS every single day, and has been doing so for over 30 years, we know how to maximize your refund and lower your tax debt the legal way. Contact us today to setup your consultation. We will discuss your options, explain to you how to handle the situation and if necessary, we can manage the process for you. Visit our website for free advice or call us NOW (713)774-4467.
