Incentive Stock Options
ISOs are a tax-advantaged form of equity compensation offered by many startups and public companies. Unlike Non-Qualified Stock Options (NSOs), ISOs are not taxed as ordinary income at exercise under the regular tax system. But they can trigger the Alternative Minimum Tax (AMT), making your exercise timing and quantity critical decisions. A well-planned ISO exercise strategy, timed around your income, AMT exposure, and company outlook, can preserve a significant portion of your upside. Browse the posts below to understand how ISOs work and how to make smarter exercise decisions.