| st.exch. |
non-qual (often "non-qual stock option": There are two different types of options. The first is incentive stock options, commonly called ISOs. And the second is non-qualified stock options, commonly called non-quals. The difference between the two is purely tax driven. Whether you grant an ISO, an incentive stock option, or a non-qual, there is no tax when it's granted and there also is not any tax when it vests. The tax event is on exercise. When a non-qual is exercised, the gain, if any, is subject to ordinary income tax. When an incentive stock option is exercised, there's no ordinary income tax on the gain, but the gain could be subject to alternative minimum tax, which primarily impacts high earners.
 googleusercontent.com 'More) |
