Incentive Stock Options  (ISO) Taxes Explained
Channel: EA Tax Resolutions
Date: 2022-01-18

How federal income taxes work with Incentive Stock Options and Alternative Minimum Tax or AMT.

00:00 Incentive Stock Option – Taxes Explained
01:00 Key Terms
04:13 Most Favorable Situation to sell ISO for Tax
05:15 Five different events that trigger a tax for ISO
06:26 1. Exercise your option to purchase the shares and hold them.
08:52 2. Exercise your option to purchase the shares, then sell them any time within the same year
12:19 3. Exercise your option to purchase the shares and sell them after less than 12 months, but during the following calendar year.
16:47 4. Sell shares at least one year and a day after you purchased them, but less than two years since your original grant date.
21:10 5. Sell shares at least one year and a day after you purchased them, and at least two years since the original grant date.
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Turbo tax article the examples are based on: https://turbotax.intuit.com/tax-tips/investments-and-taxes/incentive-stock-options/L4azWgfwy
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EA Tax Resolutions Website: https://eataxresolutions.com/?utm_source=Youtube&utm_medium=Video&utm_campaign=Incentive+Stock+Options++%28ISO%29+Taxes+Explained
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🤵If you are looking for professional tax help with your tax use the link below to schedule an appointment for us to go over your specific case: https://calendly.com/info-34527
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Disclaimer: The information provided in this video is for informational purposes only and is not meant to take the place of professional legal, accounting, or financial advice. If you have any legal questions about this video or the subjects discussed, or any other legal matter, you should consult with an attorney or tax professional in your jurisdiction (i.e. where you live).

#IRS #IncentiveStockOptions #ISO #AMT #AlternativeMinimumTax