Options, warrants, convertible equity and convertible debt are all familiar tools of corporate finance. Taxing LLC Options covers the federal income taxation of non-compensatory options (NCOs) issued by partnerships and LLCs taxed as partnerships including the tax consequences of the issuance, exercise, and lapse of NCOs, when an option holder may be treated as a partner for tax purposes and the tax requirements for the organization documents of partnerships and LLCs issuing NCOs.