Tax,
Securities,
Corporate
May 3, 2019
Common questions about tax rules for pricing options
There are special rules for incentive stock options that a corporation can issue to an employee. Among those rules, the exercise price of the incentive stock option cannot be less than the stock price on the date that the option is granted.
Michael Shaff
Stubbs Alderton & Markiles, LLPMichael is chair of the firm's Tax Practice group. Michael specializes in all aspects of federal income taxation. He has served as a trial attorney with the office of the chief counsel of the Internal Revenue Service for three years. He is co-author of the "Real Estate Investment Trusts Handbook" published annually by West Group. Michael received his A.B. at Columbia college in 1976, his J.D. from New York University School of Law in 1979 and his LL.M. in taxation from New York University School of Law in 1986.
1. Are there special tax rules on setting the exercise price of options issued to employees and consultants?
There are special rules for incentive st...
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