MUSTANGSally89
Returning Member

Taxation on dividend on ISOs

Hello! I have ISOs some of which were already exercised ("exercise and hold"). I have some that vested but I haven't exercised yet. There was a secondary round in my startup, a spart of which you could (a) opt to sell shares or options for $X per share/option or (b) receive a small dividend of $Y per share/option or (c) mixture. I chose (b) to receive a dividend.

 

I was trying to research online what would be the tax treatment for this event (like salary? Capital gains?) and I got lost. Help please!