@RobertB4444
Hmm, found two websites on my ISO topic :
1. https://launch.wilmerhale.com/research/blog/20190523-not-so-fast-the-unexpected-consequences-of-allo...:
- It is critical, when early exercising an option that the Section 83(b) election is properly and timely filed. If it is not timely filed, then (i) instead of having income at the time of making the election, there will be compensation income to the holder of an NSO (or AMT income to the holder of an ISO) equal to the difference between the purchase price (i.e., the exercise price paid) and the fair market value of the stock on each vesting date and (ii) the capital gains holding period will begin after the restricted stock vests. Again, any compensation income would be subject to all applicable income and withholding taxes (which the company must ensure can be satisfied).
2. https://darrowwealthmanagement.com/blog/early-exer[product key removed]ns/#:~:text=If%20you%20work%2....:
No 83(b) election and qualifying disposition
If you don’t make an 83(b) election, there are no tax implications at early exercise for the AMT or federal tax. Instead, when the shares vest, the spread between the strike price and FMV at vesting is income for AMT. To meet the terms for a qualifying disposition, you’ll need to hold the shares for 1 year after the shares vest (not when you early exercised) and 2 years from the grant date.
This seems wrong according to our discussion and can cause other future readers to make a wrong decision based on the incorrect information, wondering if I should contact them to correct their post.
