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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!

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2 Replies

Taxation on dividend on ISOs

Please check back here later. I'll page Champ @Mike9241.

Taxation on dividend on ISOs

your best bet would be to ask your human resource department. after all the company will need to issue you tax reporting forms.  - a 1099-DIV (I think most likely) then the next question would be is it a qualified dividend eligible for treatment like a long-term capital gain. That too would be on the 1099-DIV. if this is a foreign country. I can't answer. I you are not a US citizen or resident that would also affect reporting 

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