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What is the holding period for ISOs?

September 18, 2006

Date:   Sat, 03 Sep 2006
From:   Meg

Am I correct that if the stock splits (2:1) after an ISO is exercised, you must take that in account when selling the stock, so the grant price would then be one-half of the original grant price?

Answer

Date:   Mon, 11 Sep 2006

Hello Meg,

Yes.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.

 

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