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Subject:   ISO vs NQSO
Date:   Thu, 08 Apr 2004
From:   Tim

I am currently consulting for a company. They would like to offer me NQSOs now, or I could receive ISOs when I become a regular employee in about 6 months.

But, I might never become an employee.

Should I take the NQSOs now or wait for ISOs?

Regards,
Tim

Answer

Date:   Mon, 03 May 2004

Hello Tim,

If there is a chance you might never become an employee, take the NQSO "bird in the hand."

Good luck!

Mike Gray

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

For more information about non-qualified stock options, request our free report, Non-Qualified 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.