[bm1362]

The stock is counted as income when it is exercised. The basis is the strike price then, once you sell later it’s considered either capital gain or loss. My understanding is that you can only apply 3000 in capital loses to income tax liability.

[sokoloff]

You can apply unlimited capital loss against capital gains and then an additional $3K of capital loss against income each year.

[MAGZine]

That is an NSO, not ISO.