menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Federal Taxation
  4. Exam
    Exam 19: Deferred Compensation
  5. Question
    A Major Disadvantage of an NQSO Is That an Employee
Solved

A Major Disadvantage of an NQSO Is That an Employee

Question 54

Question 54

True/False

A major disadvantage of an NQSO is that an employee must recognize ordinary income on the exercise of the option or at the date of the grant without receiving cash to pay the tax.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q49: Which of the following characteristics is not

Q50: An NQDC plan cannot discriminate in favor

Q51: On November 19, 2018, Rex is granted

Q52: Group life insurance is considered a deferred

Q53: Yvonne exercises incentive stock options (ISOs) for

Q55: Zackie has five years of service completed

Q56: The $1 million deduction limitation on executive

Q57: If a married taxpayer is an active

Q58: The special § 83(b) election (i.e., where

Q59: Fred is a self-employed accountant with gross

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines