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Subject:   Stock Grant versus ISO/NQSO
Date:   Mon, 8 Apr 2002
From:   Todd

Hello Michael,

This is a very informative site. Very valuable, but I must admit that after reading your response to stock grant versus ISO, I'm still confused. What is the tax treatment for a stock grant? From a tax treatment standpoint, is the stock grant considered the same as an ISO with zero cost basis or an NQSO with a zero basis?

Todd

Answer

Hello Todd,

A stock grant is not an ISO or a NQSO. For an analogy, it is taxed "like" a NQSO with a zero option price.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.