Course Description: This is a basic-level course covering the application of the Internal Revenue Code to grants of employer stock options to employees as compensation for services rendered to the employer by the employee. Specifically, this course covers the tax and reporting aspects of compensatory stock options in the form of nonstatutory stock options (NSOs) and incentive stock options (ISOs) from the date of grant through the ultimate disposition of the underlying stock.

Course Level: Basic

Course Prerequisites: None

Delivery Method: Self-study

After completing this course you will be able to: 

• Identify nonstatutory and statutory compensatory incentive stock option arrangements; 
• Understand the timing of taxation of compensatory stock option arrangements, if any, to the employee – at grant, exercise and subsequent disposition of the underlying stock; 
• Understand the timing of deductions, if any, to the employer; Understand the nature of income generated by grant, exercise or subsequent disposition of underlying stock; and 
• Understand any income tax withholding, employment tax and reporting requirements.

CPE

1.5

CLE

N/A