Can I use the same mature ISOs again to acquire more ISOs?

July 25, 2001

Date:   Wed, 17 Jan 2001
From:   Mo

Can you use the same mature ISOs again and again to acquire more ISOs? or only once?


Date:   9 Feb 2001

Hello Mo,

Once the shares received meet the holding period requirements, they may be used in exchange to exercise another ISO.

When you do this many times (holding the shares the required period each time), the accounting can become very complicated because you have to keep track of the basis adjustments for alternative minimum tax for the shares received.

Good luck!

Mike Gray

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

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