Minimize Taxes by Splitting Your ISO Exercise between December and January Incentive Stock Options (ISOs) are eligible for favored tax treatment which means they are not subject to withholding tax upon exercise like NSOs. However, they are subject to Alternative Minimum Tax (AMT) if the size of your exercise is beyond the exemption limit. If you happen to be at the end of the current tax year and you just eclipse the exemption limit, then consider exercising just enough in December to stay below the limit. Incentive Stock Options (ISOs) are eligible for favored tax treatment While exercising the restRead More
Stock option grants come hand in hand with working for private, venture backed companies and are often the most lucrative of the incentives offered – yes even more than catered lunch and cold brew . However, one of the biggest questions faced by prospective new hires is if the equity package on the table is a fair one. Unfortunately, unlike salary information that is democratized through popular websites such as Glassdoor and LinkedIn, there is no public repository of equity grant informati
When is the best time to exercise ISOs? ESO experts know the best time to exercise ISOs. Incentive Stock Options (ISOs) are eligible for favored tax treatment which means they are not subject to withholding tax upon exercise like NSOs. However, they are subject to Alternative Minimum Tax (AMT) if the size of your exercise is beyond the exempti
One of the best ways venture-backed start-ups attract and retain great talent nowadays is by offering stock options packages as compensation or as part of their remuneration. This provides a great option for employees by exercising and ultimately selling their options at a higher value than their
Net exercising is essentially a cashless exercise where you tally up the total net value of your stock options based on the number of vested shares multiplied by the spread between the current Fair Market Value (FMV) and your exercise price(s). That total value is then divided by the current FMV to determine how many shares you get to keep. This total value is then taxable to you at ordinary income tax rates. Since your stock isn’t actually liquid yet, the tax obligation from a cashless exe
We have temporarily closed our physical office due to COVID-19; however, our team will be operating remotely to process all option exercise and liquidity requests.