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March 21, 2021
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ESOP Tax liability question

  • March 21, 2021
  • 1 reply
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I was granted Stock Options (ISO) by my employer in 2020 some of which vested in 2020 but I didn't exercise them. Is there any tax due on vesting of stock options, or it is only at the time of exercising/selling?

Best answer by MaryK4

If your employer grants you a statutory stock option, you generally don't include any amount in your gross income when you receive or exercise the option.  You have taxable income or deductible loss when you sell the stock you bought by exercising the option. 

1 reply

MaryK4
MaryK4Answer
Level 15
March 21, 2021

If your employer grants you a statutory stock option, you generally don't include any amount in your gross income when you receive or exercise the option.  You have taxable income or deductible loss when you sell the stock you bought by exercising the option. 

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