How are employee stock options taxed?

Answer Employee stock options come in two varieties: nonqualifying and incentive (ISO). Non-qualifying stock options are typically taxed at the ordinary tax rate at the time the option is exercised. ISO a... Read More »

Top Q&A For: How are employee stock options taxed

How are incentive stock options taxed?

Incentive stock options, ISOs, are taxed when the underlying stock is sold. The sale is taxed as capital gains. The ISO shares must have been held longer than two years after the the date you rece... Read More »

How to Exercise Employee Stock Options?

Stock options are given to employees by their company as incentives or bonuses. The documents regulating the options state that the employee can buy a certain amount of shares at a specific price. ... Read More »

Tax Benefits of Employee Stock Options?

Stock options offer employees and executives the right to purchase a stock at a set price. The option expires after a set period of years. If an employee takes advantage of a stock option in the Un... Read More »

How Is Income From Options Trading Taxed?

Options are derivative investments that give the owners the right, but not the obligation, to buy an underlying asset for a specified period at a set price. In many cases, their tax treatment is si... Read More »