Stock Option Taxation

Hey Carta Community! I'm Shelby Skoczylas, CPA and part of Carta's Equity Advisory team. As tax season approaches, it's a great time to make sure your team has access to resources on stock option taxation. For employees with vested options, taxes may be due when options are exercised or sold--knowing the specifics can help avoid surprises come filing time.

This blog is a great resource to share with your team who may have tax questions about their options: How stock options are taxed. In this blog, I break down:

• Types of stock options: ISOs vs. NSOs

• When taxes apply: At exercise and sale

• Tax categories: Capital gains vs. ordinary income

• Alternative Minimum Tax (AMT): When it applies for ISOs

It's all about making smart choices with your equity to avoid unnecessary tax burdens. Share this with your team or dive in yourself-it's never too early to get prepared!

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Shelby Skoczylas
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