u/Due-Article-4595

When the FMV (409A valuation from last round) and the Exercise price are the same , how are ISOs and NSOs taxed ?

Startup Post Termination Exercise tax question --

When the FMV (409A valuation of latest round) is the same as Exercise Price (the company has not raised any new equity round since last raise) what happens to

1. ISOs: I guess straightforward as no tax has to be paid (as this is the case even if FMV is greater than exercise price) and there will be no AMT to worry about as there is no "spread"
2. NSOs: No tax to be paid as there is no difference between the FMV and Strike price

Am I correct in my understanding ?

Thanks