1ISOs are a common benefit for executives. Which of the following statements is

Question

1ISOs are a common benefit for executives. Which of the following statements is false regarding ISOs?

a. ISOs can only be granted to an employee of the corporation issuing the ISOs. ?

b. The exercise of ISOs may incur an AMT tax liability.?

c. ISOs will be treated as NQSOs to the extent that the aggregate fair market value of exercisable ISOs exceeds $100,000 in any one calendar year.

d. To qualify as an ISO, the executive must hold the stock for either two years from the grant of the ISO or two years from the date of exercise of the ISO. ?

Explanation / Answer

Solution: To qualify as an ISO, the executive must hold the stock for either two years from the grant of the ISO or two years from the date of exercise of the ISO

Explanation: To qualify for an ISO, the executive must hold onto the stock for at least two years after the grant date or year and one day after the exercise date, which ever is later

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