Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I know that if a person sells stock bought on an ISO before the one year holding period ends, the "spread" at the date of exercise is taxed as income.

My question is, how does the IRS know that the stock sold was purchased under an ISO? I know that the employee is supposed to notify the company if the stock is sold before the one-year holding period. Is this where the IRS gets informed?
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.