Category: ISO

Why Exercising Incentive Stock Options When the Stock Price is Down May Not Be Your Best Strategy

Wouldn’t it be great if your company stock price only ever went up—especially if you’re participating in its growth through incentive stock options (ISOs)? Unfortunately, that’s not always how the world turns. If the share price goes down instead, you may be bummed to see the value of your incentive stock options is less than what it once was. However, a down stock price might mean that you could score some tax breaks if you exercise and hold some of those ISOs. When the price is down, the move might help minimize alternative minimum tax (AMT).

read more

6 Tips to Manage and Mitigate the Alternative Minimum Tax on Incentive Stock Options

Incentive stock options are a type of equity compensation you may receive as part of your overall compensation package. Incentive stock options, or ISOs, allow you to buy company stock at a fixed price for a set period of time, regardless of the current fair market value of the stock. In the best circumstances, incentive stock options can be a tool to generate significant wealth if…

read more

Six Things to Know About Pre-IPO Incentive Stock Options

The choice of when to exercise your incentive stock options can be a difficult one, with serious implications for financial planning and taxes. When your company is still pre-IPO, that opens up an entirely separate set of concerns that you may need to be aware of. The issues associated with pre-IPO incentive stock options (ISOs) are particularly relevant now, as early-stage companies increasingly find private funding sources and delay the date of their IPO. As the length of time between startup and IPO increases, more and more employees are facing the question of the costs and benefits of pre-IPO ISO exercise.

read more

Dive Deeper

Whether you’re just getting started or expanding your knowledge, here are some resources to get you started.

NEW! The Ultimate Guide to Equity Compensation

ebook cover

Understand what you have, what you should consider, and what ultimately matters to you.

Hi, I'm Daniel Zajac, CFP®, EA

Daniel Zajac headshot small

Understand what you have, what you should consider, and what ultimately matters to you.

Don't Miss A Thing!

Sign up today for free and be the first to get notified on all things equity compensation, incentive stock options, non qualified stock options, restricted stocks, and more!

You have Successfully Subscribed!

Download your Free EBook

Sign up now to receive your FREE copy of "The Ultimate Guide to Incentive Stock Options".

You have Successfully Subscribed!

NEW! The Ultimate Guide to Equity Compensation

Understand what you have, what you should consider, and what ultimately matters to you.

Success! Your Guide will be sent to the email address you provided.

FREE DOWNLOAD

Get the Ultimate Guide to Incentive Stock Options to better understand your equity compensation.

Success! Your Guide will be sent to the email address you provided.