Incentive stock options
are also adopted by companies listed in China as a necessary means to retain employees and boost profits.
Stock options for employees fall into three major categories: Incentive stock options
, nonqualified stock options and restricted stock.
Incentive stock options
are the most tax-advantaged way to share in the growth of your company -- but out of ignorance, many executives do not take advantage of the preferential tax treatment available to ISOs.
Inca One Gold Corporation (TSXV: IO)( Frankfurt: SU9.F)( SSEV: IOCL), a Canadian-based mineral processing company, has authorised the granting of incentive stock options
to directors and officers of the company.
New York, NY, May 07, 2011 --(PR.com)-- The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, announced today that it has scheduled a live webcast entitled: "Understanding New Employer Reporting Requirements for Incentive Stock Option
and Employee Stock Purchase Plan." This two-hour event is scheduled on May 27, 2011 from 12:00 PM - 2:00 PM ET.
In reading the October "Options Backdating" issue, it seems clear that incentive stock options
(ISO) isn't the problem; the nonqualified stock option (NSO) is the problem.
In a well-known song, "The Gambler," Kenny Rogers advises, "[k]now when to hold 'em, know when to fold 'em, know when to walk away, and know when to run." Although intended for card players, this advice should also be heeded by holders of incentive stock options
Preferences that must be added back include (but are not limited to) the standard deduction, personal exemptions, a portion of medical expenses, state and local taxes, some mortgage interest, a portion of miscellaneous itemized deductions, net operating loss deductions, passive income or loss deductions, a portion of accelerated depreciation and some income from the exercise of incentive stock options
. Exemption amounts differ, depending on the taxpayer's filing status, and are phased out if AMT income exceeds certain limits.
The IRS recently released Private Letter Ruling 200519011 (5/13/05) addressing the division of incentive stock options
(ISO) in a divorce.
The forthcoming guidance is also expected to exempt statutory stock options, such as incentive stock options
(ISOs) and employee stock purchase plans (ESPPs), as well as bonuses that are paid out within 2-1/2 months after the end of the bonus period.
* Notice 2001-14 announced the IRS's intention to clarify the application of FICA and FUTA taxes and income tax withholding to statutory options (incentive stock options
(ISOs) and employee stock purchase plans (ESPPs)).
On a more fundamental level, the increase in ordinary income tax rates may cause compensation committees to re-emphasize the awarding of incentive stock options