Articles & Legal Insights

Practical legal guidance and timely updates from The Karam Firm — helping individuals and businesses navigate complex legal landscapes with confidence.

IRS, State Tax Issues, Stock Options Colette Karam IRS, State Tax Issues, Stock Options Colette Karam

Taxes on Stock Options: Why the Grant, Exercise, and Sale Dates All Matter

From a tax perspective, options are not simple. The tax result can turn on the type of option, the exercise price, the fair market value of the stock, the timing of exercise, the holding period, the employee’s alternative minimum tax exposure, and whether the company complied with technical plan and valuation rules.

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