What I need to know if I received an inceptive option in the form of company stock
What is an incentive stock option?
Some time companies give employees the right to buy shares of the company in lieu of compensation. Other times the intention is to give the right as an incentive in exchange for work performance, meet some goals, due dates, etc. The option price at which the employee paid could vary.
What is the Taxpayer Tax Treatment?
If you receive an option as an incentive, the taxpayer needs to keep a few dates in mind: Date was granted, the date is exercised. Also: when and what is considered compensation or capital gain.
The best option for taxpayers is to consult a CPA.
Source: IRS.gov
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