Incentive Stock Options: The Basics & Taxes
Vložit
- čas přidán 9. 09. 2020
- Incentive Stock Options, or ISOs, can feel pretty complex... because they are.
What does it mean to exercise?
When should you exercise?
When should you sell?
What in the world is this Alternative Minimum Tax (AMT)?!
Like most things, there is no one size fits all answer. If you're in this situation, I would REALLY stress reaching out to a CFP® professional that specializes in stock comp (🙋🏻♂️) and/or a tax professional
The goal of this video is to give a visual break down of how ISOs work and how they are taxed in a couple of scenarios.
www.javawealth.com
#personalfinance #money #stockcompensation
Awesome job. Great supplement to my CFP book.
This was extremely helpful - thank you!
Thank you!
Thank you 😁
Super helpful. Short and clear
Thank you sooooo much
I love your videos, so keep up the work!
Hi! This was a great video! I am using your content to study for the CFP exam and it has been really helpful! The one part about ISO and tax treatment that I cant seem to wrap my head around is when there is AMT or when to classify as 1040, any feedback?
Very helpful ! I love the whiteboard, easy to understand!
Nice. Thanks.
Good
Great video. Thanks
Hi! Thank you for creating this video. It is great! My question is for the beginning of the video where you talk about exercising the option for the $10 strike price. Does that mean you would have to have the $10K in hand needed to purchase the stocks at that strike price or because the ISOs are gifted to you, is it as simple as exercising them and you immediately get the stock that is currently trading at $20/share. Or is there a way to like use your profit from the options to purchase the shares and that just mean you have less shares that you end up purchasing. I hope this makes sense! Thank you!!
Thank you so much for this video. I do have a question. I did some research and found that there is a yearly limit of $100K on company issued ISO. Assuming the company granted $200K (at strike price) in a certain year, does that mean only 100K will be considered as ISO and will have the tax benefits discussed in your video? All others will be treated as NSO and will be counted as regular income when exercised? What if I exercise only 100K in a year and wait for another year to exercise the other half?
Great video. If I sell my ISOs and pay regular income taxes, is that considered income or capital gains. I ask because I have a capital loss this year on the sale of mutual funds and I am thinking I can use that loss to offset a capital gain from the sale of my ISOs.
Thank you so much for this video. This 7 minutes was so much more helpful than chapters of my textbook!
this was a pretty good explanation!! I have 1 Q: Is exercising when the options are turned into actual shares?
Can I ask you a quick question? For example if my option price is $100 and the stock price was $120, but now is $50 is this a good time to exercise my options? It is like I can just sell it based on $50 and I don't need to buy them with $100 (nobody would buy that option obv)
Do you get the AMT tax credits in the next year regardless of whether or not you decide to sell the ISO shares in that following year? That was not clear to me...otherwise this is an excellent video.
Is it better to exercise and hold when the price of the stock is lower?