(redirected from Isos)
Also found in: Dictionary, Medical, Acronyms, Encyclopedia.
Related to Isos: Isis, ASOS


International Organization for Standardization

A non-governmental organization that sets standard codes for countries and currencies. ISO sets the ISO 3166 codes for countries and provinces, which are used in international banking transactions and shipping. Likewise, it sets the ISO 4217 codes for individual currencies. ISO has its headquarters in Geneva, Switzerland, and, because its standards are usually adopted into the law of member states, it is more powerful than most other NGOs.

Incentive stock option (ISO).

Corporate executives may be granted incentive stock options (ISOs), also called qualifying stock options. These options aren't taxed when they're granted or exercised, but only when the underlying shares are sold.

If, after exercising the options, participating executives keep the shares for the required period, any earnings from selling the shares are taxed at the owner's long-term capital gains rate.

However, stock option transactions may make sellers vulnerable to the alternative minimum tax (AMT).


References in periodicals archive ?
Although ISOs were intended to provide a tax benefit to employees, when the post-exercise price declines, optionees can find themselves subject to huge AMT tax liabilities attributable to sometimes worthless stock.
The case for ISOs is even more compelling for-start-up or other corporations with no current taxable income or substantial net operating loss carryovers, for which the unavailability of tax deductions upon the grant or exercise of ISOs is less significant.
The key tax feature of an ISO is that there are no regular income tax consequences when it is granted or exercised, although there may be alternative minimum tax (AMT) consequences.
In addition, the ISO stock will have a higher basis for AMT purposes, so an adjustment is available on Form 6251, Alternative Minimum Tax--Individuals.
If exercising an ISO makes the individual subject to the AMT, the comparative advantage of ISOs to the executive is reduced.