What is the difference in tax treatment between ISOs and stock grants?
June 5, 2002
Subject: Stock Grant versus ISO/NQSO
Date: Mon, 8 Apr 2002
This is a very informative site. Very valuable, but I must admit that after reading your response to stock grant versus ISO, I’m still confused. What is the tax treatment for a stock grant? From a tax treatment standpoint, is the stock grant considered the same as an ISO with zero cost basis or an NQSO with a zero basis?
A stock grant is not an ISO or a NQSO. For an analogy, it is taxed “like” a NQSO with a zero option price.