Bruce Brumberg
NEW! As part of your year-end and year-beginning tax planning, don't forget to review any restricted stock grants that vested this year, plus other company stock holdings. This article presents five strategies that many experts suggest.
Stanley Trotta with Robert Gordon
President Obama's tax proposals seem likely to raise rates after 2010. Should you take action with stock compensation now or wait until new rates apply? Part 2 looks at restricted stock and restricted stock units.
W.E.B. Bantling and Michael Beriss
UPDATED FOR 2009! The time for tax planning is
before the year ends; tax season is too late. For year-end 2009, learn about several ideas that apply to nonqualified stock options (NQSOs) and restricted stock/RSUs. Meanwhile, look ahead at the likelihood of tax rate changes under President Obama.
Richard Friedman
Understand financial planning for restricted stock and RSUs. Part 1 discusses the growing popularity of these grants, their special features, and the related tax planning.
Richard Friedman
Careful planning can help you maximize the value of restricted stock and RSUs by preparing you for decisions you must make. Part 2 covers complex issues in financial, estate, and retirement planning.
Alan B. Ungar
In a growing trend, your company may let you choose between stock options and restricted stock. Which is better for you? Learn techniques to analyze your financial situation and goals so that you can make the right choice.
Richard Friedman
Your company is no longer granting you stock options, or at least fewer than before. Instead, you're receiving restricted stock or restricted stock units. While these grants don't carry the same upside as stock options, they have benefits you will surely appreciate once you understand the special features of these grants.
Alan B. Ungar
As noted in Part 1, many companies are developing employee-choice programs that allow you to choose between stock options and restricted stock. Part 2 provides a method of analysis to help your decision-making.
Bruce Brumberg
Restricted stock or restricted stock units (RSUs) bring their own special issues to your tax return, and they can be more complicated than you think. Avoid pitfalls with reporting any shares sold for withholding, your income at vesting, any dividend income, your capital gains at sale, and more.
The myStockOptions.com Tax Team
UPDATED FOR 2009! Learn how to report your sales of company stock on Schedule D of IRS Form 1040. Our comprehensive guide to Schedule D reporting covers sales of stock from nonqualified stock options, incentive stock options, restricted stock, restricted stock units, performance shares, employee stock purchase plans, and stock appreciation rights.
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For restricted stock, you can make what the tax code calls a Section 83(b) election to be taxed immediately at grant instead of later at vesting, when your stock price, and thus your tax rate, may be much higher. However, before you make your decision, realize that...
A casualty or theft loss would allow you to deduct the lost amount against your ordinary income, subject to some limits. However, Treasury regulations and court rulings would probably stand in your way. Nevertheless, what you can do is...
Let's first review the tax rules and the W-2 reporting. The tax basis for...
The value at vesting is all ordinary income. You have capital gain only for the increase in the stock price after vesting. Only this gain at sale can be...
Restricted stock shares are issued up front at grant, but you do not own them outright and cannot sell or transfer the shares until the time-based restrictions lapse. With standard restricted stock units the situation is basically similar, while with performance shares your company sets goals that must be met, such as...
Generally, yes, with two exceptions. First, with RSUs you cannot...
When you terminate for standard reasons before the end of the performance cycle, you usually lose all rights to receive the grant, even if the goal appears very obtainable. If you have overlapping or concurrent grants that are outstanding...
A summary of data in surveys from 10 major consulting and research firms shows that...
Not in the way stock options can. Restricted stock is worth the full market value of the stock when it vests (or, with restricted stock units, when shares are delivered). It does not matter if...
Restricted stock refers to outright grants of company stock to employees or other service providers. It is "restricted" because...
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