Tom Davison
Even under President Barack Obama, the Bush administration's 2003 tax cuts and later extensions will continue to affect tax strategies for NQSOs, ISOs, and restricted stock. Unless these tax laws change soon, many of them will persist through 2010.
Stanley Trotta with Robert Gordon
With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock options now or wait until new rates apply? Part 1 looks at nonqualified stock options.
Stanley Trotta with Robert Gordon
With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock compensation now or wait until new rates apply? Part 2 looks at restricted stock and restricted stock units.
Stanley Trotta with Robert Gordon
With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock options now or wait until new rates apply? Part 3 looks at incentive stock options.
Kaye A. Thomas
UPDATED FOR REVISED TAX LAW! Special rules for old unused AMT credit, first available in 2007, are drastically revised for tax years 2008 (returns filed in 2009) through 2012. This is the first of two articles on the refundable AMT credit, which provides a way for many people to use more AMT credit than under the regular rules.
Kaye A. Thomas
UPDATED FOR REVISED TAX LAW! Special rules for old unused AMT credit, first available in 2007, are drastically revised for 2008. This is the second of two articles on the refundable AMT credit, which provides a way for many people to use more AMT credit than under the regular rules.
Tom Davison
With the lower tax rate on dividends, let's look at the effects of dividends on your planning for stock options and restricted stock.
Tom Davison
The lower tax rate on dividends may change your stock option and restricted stock planning. Part 1 explained basic dividend rules. This article looks at dividend strategy.
Internal Revenue Service
This extensive IRS guide covers many topics related to reporting income and expenses from investments, including dividends (Chapter 1), capital gains (Chapter 4), and interest on loans (Chapter 3).
Peter Coy
Bloomberg Businessweek
The White House and Congress face a dilemma. Although tax rates are scheduled to rise in 2011, when the Bush tax cuts are due to expire, many economists contend that the current weak economy makes it unwise to raise the current rates. However, given the monstrous federal budget deficit, the combination of low tax rates and high spending cannot continue forever.
Joe Mont
The Street
A preview of the tax changes ahead after 2010, including analysis of the impact on capital gains and dividends.
Andrea Coombes
MarketWatch
The tax cuts of the Bush years will expire after 2010, but the Obama administration and Congress may contemplate a tax-reform bill during 2010. The tax landscape in 2011 and beyond is thus hard to foresee.
AccountingWEB
Along with increases in the top tax brackets for ordinary income and capital gains in 2011, a new health-care surtax is provisionally scheduled to start in 2013 under proposals in Congress. Deloitte Tax created scenarios to explore the impact of these tax increases on high-net-worth people.
CCH Tax Briefing
A summary of the tax increases, decreases, and new programs in President Obama's proposed budget plan for the 2010 fiscal year (see also the similar proposals in the
Green Book for 2011). For example, individuals in the new top tax brackets of 36% and 39.6% would see their tax rates on long-term capital gains and qualified dividends rise from 15% to 20%.
Joshua Zumbrun
Forbes
Both the stimulus package passed in February 2009 and President Barack Obama's budget plan contain a range of changes to the tax code, including proposed increases in the top rate for ordinary income and the rates for capital gains.
Andrea Coombes
MarketWatch
The American Recovery and Reinvestment Act of 2009 includes a routine annual increase in the AMT income exemption amounts, among other provisions that may affect people with stock compensation.
Lisa Shidler
Investment News
Considering the likelihood of tax increases after 2010, some advisors (and their clients) want to sell at least some shares now, while the top capital gains rate is still only 15%. Other advisors suggest waiting, as stocks are low and gains from an eventual market upswing may outweigh any potential tax savings.
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Yes. The credit has income limits, so a big enough spike in your income from a stock compensation could push you out of the credit range or complicate your tax return...
"Capital gain" is income that arises from the sale of a capital asset. Gain from the sale of shares acquired from option exercise or restricted stock vesting is...
To keep middle-income people from being unfairly hit by the alternative minimum tax, Congress has enacted temporary relief during each of the past few years. These include legislative "patches" to extend and increase the income exemption amounts that apply to the AMT. Congress will almost certainly pass another AMT patch for 2010 at some point during 2010...
While the 2003 tax law did not change the taxation of ISOs, there were a few changes that impact the tax when you sell the stock. Tax law changes in 2006, 2007, 2008, and 2009 raised the AMT income exemption amounts and provided an alternative way to use AMT credits...
The AMT system is complicated. Broadly, it starts by taking your adjusted gross income, subtracts your itemized deductions, makes certain negative and positive adjustments, and includes certain tax items called tax "preferences." The resulting amount...
The 2003 tax law has no provisions that deal directly with employee stock options or stock purchase plans. If your income goes up...
If you hold stock acquired from the exercise of an NQSO for more than one year, the appreciation is...
The holding period to determine whether a dividend is "qualified" and taxed at the lower 15% rate starts on the date after the option is exercised and the stock is held...
If you take out a margin loan from your brokerage firm, it can lend your shares to short sellers. If that stock pays a dividend while your shares are on loan, you will...
The traditional strategy with NQSOs recommends waiting till...
Maybe not. You are probably thinking that you can borrow money, such as with a margin loan, deduct this as an investment interest deduction, and net it against investment income...
Tax considerations alone should not drive the choice of what stock you sell. For example, if you are holding appreciated company stock from a nonqualified stock option (NQSO) exercise, you will be taxed on any capital gains when you sell it. The capital-loss carry-forward from last year's unused losses can offset these gains, making it less "taxing" to diversify your holdings...
No. Under the 2003 tax cut, qualified dividends are taxed at the same rates as long-term capital gains...
Not necessarily. Employers usually withhold federal income taxes at the rate used for supplemental wages...
Estimated-tax periods end on the last days of March, May, August, and December, with payments due by the 15th (or the next business day) of the following month. If you are paying estimated taxes, one strategy is that just after the start of an estimated-tax period you can...
You need to pay enough tax during the year through withholding or estimated tax payments to avoid penalties and interest. The tax that has to be paid includes any AMT attributable to the exercise of ISOs or any ordinary income from a disqualifying disposition. In these ISO situations, your employer does not...
Possibly. The Economic Stimulus Act of 2008 created a tax rebate for individuals that is based on income in 2007 and/or 2008. Most taxpayers qualified for the whole rebate on 2007 income, and checks were mailed to them in 2008. However, the rebate is still available to a minority of people who did not qualify on 2007 income, or who qualified for only a portion of the full rebate. People with stock compensation may fall into this group...
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