What INCENTIVE STOCK OPTION means: A statutory stock option that allows an employee to purchase stock of the employer below current market price. Although the grant or exercise of such an option results in no income for the "regular" tax, the exercise of an incentive option creates income for the minimum tax. If the taxpayer meets the holding period requirements, gain on the sale of the stock acquired by exercising an incentive stock option is long-term capital gain.
- Definition Insolvency:
- Dictionary condition in which a taxpayer's total liabilities (debts owed) exceed the total fair market value of all his or her assets (cash and other property). A taxpayer is insolvent to the extent his or incentive stock option definition.
- Definition Income Averaging:
- Dictionary farmers may sometimes reduce tax liability by computing their income tax as if their current farm income had been spread evenly over the preceding three years. The term also is sometimes used when incentive stock option explain.
- Definition Involuntary Conversion:
- Dictionary money or other property as reimbursement for the loss or destruction of property through theft, casualty, or condemnation. Any gain realized on an involuntary conversion can, at the taxpayer's incentive stock option what is.
- Definition Investment Property:
- Dictionary includes property that produces interest, dividends, or royalties other than in the course of a taxpayer's business. Investment property also includes property (not in the course of the incentive stock option meaning.
How works Incentive Stock Option meaning in Tax definitions I .
