myStockOptions.com Editorial Team
NEW! The market drop of 2008, combined with the likelihood of tax-rate changes ahead, affects planning for your company stock and grants. We asked financial advisors around the United States for their ideas on planning for both year-end 2008 and beyond as the downturn plays out. Read their responses in their own words.
W.E.B. Bantling and Michael Beriss
Every year, during tax season, we get tax-planning calls. Of course, by then it's too late. The time for tax planning is
before the year ends. For year-end 2008, learn about several planning concerns that apply to stock options and restricted stock. Meanwhile, look ahead at the likelihood of tax rate changes under the new president.
Stanley Trotta with Robert Gordon
NEW! You believe a tax hike is on the horizon. Should you take action with your stock options and company stock now or wait until the new rates apply? This article series analyzes the decision. Part 1 looks at nonqualified stock options and restricted stock.
Martin Nissenbaum
You are doing some year-end or year-beginning tax planning with your stock options and company stock. While investment objectives, not tax considerations, should generally drive your decisions, here are 10 ideas to review to prevent paying more taxes than necessary.
Michael Beriss
Managing your stock options is one of the most complex financial challenges you will face. These 10 rules will help you get the most out of your company's stock plan.
Bruce Brumberg, Editor-in-Chief
myStockOptions.com
This PowerPoint presentation (in PDF) provides an overview of changes in tax law during 2008 that affect financial planning for stock compensation and the related employee education, along with special issues to focus on at year-end and in down markets. (Premium members can view the presentation in PDF from the above link and may request permission to modify it for use and distribution at their companies.)
Tom Davison and Liam Hurley
Right after you have completed your taxes is a great time to do your big-picture financial planning. You can more accurately project your income and likely tax situation for the remainder of this year and the next, including AMT risk and capital-loss carry-forwards, to develop your strategy. At the end of the year, review your analysis and strategy again.
Alan Ungar
The tax reductions of the past few years have brought both good and bad news for holders of incentive stock options (ISOs). While you may have lower capital gains rates when you hold the shares long enough after exercise, it's harder to avoid the risks of the alternative minimum tax (AMT) and to fully recoup any AMT credit.
Beth Walker
Avoid the mistakes others made during prior boom markets and downturns. Common mistakes arise in nine different situations, including termination, mergers, financial planning, term expiration, and life events.
Beth Walker
Avoid the errors that many people have made, including mistakes that stem from major life events and taxes.
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Instead of paying cash dividends, a small number of companies require...
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