If you're reviewing a trading plan for a client and you haven't set the max number of ISOs to be disqualified for a client, the Gemifi algorithm will automatically disqualify ISOs on your behalf.
There are two outcomes related to ISOs, a qualified disposition and a disqualifying disposition. If ISOs are not disqualified, then they will be treated as qualified dispositions, which ensure that income related to the options are not subject to ordinary income tax rates and/or payroll taxes.
In order to ensure that the algorithm does not permit a disqualifying disposition, then you will need to limit those types of dispositions to 0 in the Max Disqualified Shares field of that plan. This will ensure that the algorithm only allows qualifying dispositions of ISOs (exercise and hold, then sell).
