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ISO (Incentive Stock Option)
Glossary · Tax Concepts
Definition
Incentive Stock Option. The spread at exercise isn't taxed as ordinary income but is an AMT preference item.
Exercising ISOs with a $40k spread adds $40k to your AMT income, even though regular tax ignores it.
Terms are defined in the context of how ArthaPilot uses them. For authoritative definitions, consult the SEC, IRS, or a qualified financial advisor.