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FORM 4 [ ] Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b). UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549STATEMENT
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How to fill out incentive stock option right

01
Understand the terms and conditions of the incentive stock option (ISO) right.
02
Determine the exercise price and expiration date of the ISO right.
03
Complete the necessary paperwork provided by your employer or the stock option plan administrator.
04
Submit the paperwork along with any required payment for the exercise price.
05
Keep records of the exercise of the ISO right for tax purposes.

Who needs incentive stock option right?

01
Employees of a company looking to incentivize their workforce.
02
Individuals seeking to benefit from potential stock price appreciation.
03
Companies wanting to retain talented employees by offering stock ownership opportunities.

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Incentive stock options (ISOs) are a type of employee stock option that gives employees the right to purchase company stock at a predetermined price, known as the strike price, for a specific period.
Employees who exercise incentive stock options and subsequently sell the acquired shares must report the transactions on their tax returns. Employers must also report the issuance and exercise of ISOs on their tax filings.
To fill out incentive stock option reporting, employees must complete the relevant section on their tax return, typically IRS Form 3921, which reports the exercise of ISOs and the details of the transaction.
The purpose of incentive stock options is to provide employees with an opportunity to purchase stock at a favorable price, potentially increasing their financial investment in the company and aligning their interests with the company's performance.
The information that must be reported includes the date of ISO grant, the date the option was exercised, the number of shares acquired, the exercise price, and the fair market value of the stock on the exercise date.
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