Options Trading Tutorial

Do expired Incentive Stock Options (ISO) qualify as a tax deduction?

I had a bunch of Incentive Stock Options (ISO) expire when I left my last employer. These options had been granted to me years before and I was fully vested but never exercised them. Can I write off the intrinsic value of the options at the time of expiration as a capital gains loss?

Public Comments

1. I don't see how you could. ISO, like any stock option, has no value until it's exercised. It's essentially just a coupon (a COMPLICATED coupon) for shares.
2. I don't see how you could. ISO, like any stock option, has no value until it's exercised. It's essentially just a coupon (a COMPLICATED coupon) for shares.
3. No. After all, you didn't pay tax on the intrinsic value when it was granted or vested.