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ABC Accounting Group
ABC Accounting Group, Financial Advisor
Category: Finance
Satisfied Customers: 193
Experience:  Accounting Manager
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My question is a little complicated.. my company offered

Customer Question

My question is a little complicated.. my company offered incentive stock options which vest over a 4 year period.. they recently converted from an llc to a corporation and offered us options on our vested amounts. we could either convert the vested portion to common stock in the "new" company or take a cash payout (valued at $.75 fair market value) for the vested portion, or do a combination of both. I'm wondering what the tax liability will be for the cash out of vested units if I take that option.
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: Not sure, she may have questions for me.
Submitted: 1 month ago.
Category: Finance
Expert:  ABC Accounting Group replied 1 month ago.

Hi. Great Questions. I have worked with ISO's before. If they give you $'s for it, then it is taxed t the 20% long-term capital gains tax. For Incentive Stock Options, it gets converted, there is -0- tax.

Expert:  ABC Accounting Group replied 1 month ago.

Let me know if you have any questions. If not, a positive rating is very much appreciated.

Expert:  ABC Accounting Group replied 1 month ago.

Best Regards.