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Annotated diagram of Schedule DTax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.

SARs: Basics

Does all the stock option content on this website also apply to stock appreciation rights (SARs)?
Much of the stock option content is relevant to SARs. All the key stock option features apply to SARs, except fewer choices of exercise method. The big difference between options and SARs is that you do not need to pay an exercise price with SARs, as explained in the articles and FAQs of the SARs content section. Similarly, this website's content on non-tax topics for stock options, such as grants, vesting, life events, and financial planning, also apply to SARs.

The tax rules and tax treatment at exercise and sale are identical to those of NQSOs, so also review that content section for additional details. As with stock options, you should know your company's specific rules and procedures, such as those for post-termination exercises should you lose your job.

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