Model ISO vs NSO stock options, 83(b) early exercise tax savings, AMT spread liability, dilution across funding rounds, and net in-hand wealth across multiple exit valuations.
| Scenario | Gross Value | Exercise Cost | Est. Taxes | Net In-Hand |
|---|---|---|---|---|
| Modest Acquisition ($25M) | $75,000 | $30,000 | -$11,250 | $33,750 |
| Base Case ($100M) | $300,000 | $30,000 | -$67,500 | $202,500 |
| Strong Scale ($350M) | $1,050,000 | $30,000 | -$255,000 | $765,000 |
| Unicorn IPO ($1.2B) | $3,600,000 | $30,000 | -$892,500 | $2,677,500 |
Filing an 83(b) election within 30 days of grant locks in low strike valuation, converting future exit gains into Long-Term Capital Gains rather than ordinary income.
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Actionable guide on ISO vs NSO tax timing, strike price negotiation, and secondary market liquidity.
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