Bruce Brumberg and Lynnette Khalfani
The 2015 tax-return season has the potential to be more confusing than most if you sold stock in 2014. Read this article for tips on reporting stock sales and on other crucial tax-return topics.
Your company has granted you stock options. Now what? This article explains the essential facts that you must know to understand your stock options and make the most of them.
Stock options aren't just for the folks on mahogany row any more. But turning stock options into the real green stuff takes some know-how. You need to know certain features of your grant to decide when to exercise your options and sell the stock.
The myStockOptions.com Tax Team
If you sold in 2014 any shares that you acquired from equity compensation or an ESPP, you will need to report the sale on your tax return. Learn here what you need to know to avoid expensive mistakes and unwanted IRS attention. Annotated diagrams of Form 8949 and Schedule D
can help you make sense of the reporting rules.
Stock options are a major element of your long-term incentive compensation, offering tremendous potential to accumulate personal wealth. Given your stock options' complexity, it’s essential to develop a strategy to realize their full potential.
The stock-sale information provided by brokers on IRS Form 1099-B has changed. Cost-basis reporting, both for your broker on Form 1099-B and for you on your tax return, is now more complex, confusing, and vulnerable to errors. This article explains the crucial facts you must know to avoid overpaying tax or attracting unwanted IRS attention.
Here's some advice for financial fitness: take stock of taxes before you exercise! When and how you exercise your stock options can have a major impact on how much tax and which taxes you'll pay.
Get a sense of what you should, and should not, expect in the terms of your stock option grant. A major survey of companies looks at trends in vesting schedules, post-termination exercise rules, and other plan features.
Learn how to prevent costly tax return mistakes with this animated presentation on IRS Form 1099-B, IRS Form 8949, and Schedule D.
You cannot cash in your stock options immediately. The options must first be vested, and you don't own them forever.
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You should know the answers to the following questions. Understanding the topics involved will help you make the most of your stock options and prevent costly mistakes...
To compute the appreciation since exercise, you take the sales price after commissions and subtract...
The full spread for a nonqualified stock option is included in your gross income for the year of exercise as ordinary income...
Capital gains tax applies on the amount of your gains above...
Capital gain is income that arises from the sale of a capital asset. Gain from the sale of securities held for investment, such as shares acquired from stock compensation...
Yes. The spread at exercise of an NQSO is considered "wages" for the purposes of...
There is a federal tax (called FUTA) to help fund unemployment benefits. FUTA is imposed on...
Many states, along with some counties and cities, impose...
Your actual tax bracket may be higher or lower than the mandatory federal withholding rate. Whether your company can withhold more depends on...
Backup withholding is a form of tax withholding on income from stock sales, along with interest income, dividends, or other types of payments that are reported on Form 1099. Your brokerage firm is required to make backup withholding if you are...
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