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ISO (Incentive Stock Options)

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    ISO (Incentive Stock Options)

    W-2 Box 14 list an amt for ISO. I located this article dated in 2010:

    Incentive Stock Options qualify for preferential tax treatment – the key preference being that the recipient can delay paying taxes on stock acquired by excercising the option until the stock is actually sold. If the recipient sells the stock right away, any gain is treated as ordinary income, which gets taxed at the same rate as your salary; but if the stock is held for a year, any gain qualifies as a capital gain, which is taxed at a maximum of 20%.

    TP also received a 1099-B disclosing the ISO trades. As I read this, does the Grant Date determine the holding period? If so a Grant Date of 2005 and sold in 2014 would be considered LT, correct?

    #2
    Originally posted by AZ-Tax View Post
    does the Grant Date determine the holding period?
    The exercise date. TTB 6-2; Pub 525.

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