Forfeit of 16k in incentive stock options

[Neta160]

Hi,

I was awarded 16k in ISOs.  I was not able to exercise them until after a certain number of years of employment.  However, I was laid off and I was told I lost them.  Can the loss be written off in some way?

[smarttees]

What happens if an employee who makes an election leaves his job before the stock substantially vests? In that case, the employee forfeits his stock and is allowed a limited loss deduction. The amount of the deduction on forfeiture is limited to the amount paid for the stock, less the amount realized on the forfeiture (if any). Reg. §1.83-2(a). Notably, though, no deduction is allowed for the amount the employee previously included in income by making the 83(b) election.

ISO forfeit