Question

Is there anything for me to record when filing my taxes if I exercised ISOs ($9.00 Strike, $9.59 FMV) in 2021 and I'm still holding the shares?

Forum|Forum|4 years ago
January 28, 2022
1 reply
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TurboTax Premier Online

No. The advantage of an ISO is you do not have to report income when you receive a stock option grant or when you exercise that option. You report the taxable income only when you sell the stock.

You report the taxable income only when you sell the stock. And, depending on how long you own the stock, that income could be taxed at capital gain rates ranging from 0% to 23.8% (for sales in 2021)—typically a lot lower than your regular income tax rate.

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