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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

 

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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