ISOs vs. NSOs Explained: Understanding Your Stock Options

In Part 2 of our 3-part equity compensation mini series, Amplius planning team members Maria Kelly and Phil Matalucci dig into stock options — the contracts that give you the right to buy company shares at a preset price down the road. They walk through how Non-Qualified Stock Options (NSOs) and Incentive Stock Options (ISOs) are taxed, the two holding periods that unlock long-term capital gains treatment on ISOs, and what the Alternative Minimum Tax (AMT) means for ISO planning. 00:00 – Welcome & Stock Options Overview 00:33 – NSOs vs. ISOs: The Two Types 00:50 – How NSOs Work & Are Taxed 01:30 – Hold or Sell? Considerations for NSOs 01:57 – ISOs: A Tax-Advantaged Option 02:22 – The Two Key Holding Periods 02:50 – Disqualifying Dispositions Explained 03:46 – AMT: The Alternative Minimum Tax 04:15 – How AMT Works & the AMT Credit 04:45 – ISO Strategy: Concentration, Risk & Timing 05:41 – Closing Thoughts 🔔 Subscribe for more: https://tinyurl.com/the-wealth-advisors 📅 Work with Amplius: https://go.ampliuswealth.com/consult Disclosure: This content is for educational purposes only and is not individualized investment or tax advice. Disclaimer: This communication is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase any security or investment product or services. The content of this communication is provided solely for your personal use and shall not be deemed to provide access to any particular transaction or investment opportunity. Amplius Wealth Advisors does not intend the information in this communication to be investment advice, and the information presented in this communication should not be relied upon to make an investment decision. Past performance is not indicative of future results. Any third-party information contained herein was prepared by sources deemed to be reliable but is not guaranteed. All opinions expressed by the participants are solely opinions and should not be relied upon as potential or actual results. This information is not intended to be legal or tax advice.