Determining Basis in Employee Stock Options

A stock option is a contract issued by an employer to an employee to purchase a set amount of shares of company stock at a fixed price for a limited period of time. There are two broad classifications of stock options issued: non-qualified stock options (NQO) and incentive stock options (ISO). Rules for determining basis in employee stock options are discussed in this lecture video.

Topics Covered

* Identification of the different types of employee stock options
* Qualifying and disqualifying dispositions of employee stock options and ESPPs
* Calculating basis in stock acquired through employee stock purchase plans
* Compensation rules relating to ESPPs and NQOs
* Restricted stock, including RSUs and RSAs
* Benefits and procedures for making a Section 83(b) election

Pacific Northwest Tax School is approved by the following organizations as a provider of continuing education:
* The IRS
* NASBA QAS (NASBA Sponsor #109290),
* Oregon Tax Board,
* The Texas State Board of Public Accountancy (Texas Sponsor #009794)
* The New York State Board for Public Accountancy (Sponsor License #002479)

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We hope you enjoy this lecture video and find the information it contains helpful. We appreciate your feedback, but do not respond to tax questions posted by viewers.

Enrolled students have access to our Q & A forum where they can post questions and receive answers about subjects covered in this course. Enrolled students also receive a copy of the student manual, can complete course assignments and receive course answer keys, and receive CE credit.