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SARs

Learn about stock appreciation rights (commonly abbreviated SARs), which are functionally similar to nonqualified stock options in many ways.

Browse an overview of this section below, or explore the subtopics to the left. See also the stock appreciation rights section of the Tax Center.

Test Your KnowledgeTest and improve your knowledge with our Stock Appreciation Rights quiz and its study guide in the answer key.

  Articles   FAQs  

What You Need To Know About Stock Appreciation Rights (SARs): Part 1 This is premium content

Bruce Brumberg
Stock appreciation rights, referred to as SARs, will soon start showing up in equity grants at many companies. To help you understand SARs, Part 1 explains the "appreciation," the role of exercises, and taxes at exercise.

What You Need To Know About Stock Appreciation Rights (SARs): Part 2 This is premium content

Bruce Brumberg
UPDATED! Stock appreciation rights, referred to as SARs, are garnering interest among companies. Part 2 discusses taxes, IRS concerns, and why companies like SARs.

How To Report Sales Of Company Stock

The myStockOptions.com Tax Team
UPDATED FOR 2010! 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.

Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs

W.E.B. Bantling and Michael Beriss
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.

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What are stock appreciation rights?


SARs, or stock appreciation rights, are contractual rights that entitle you to receive the appreciation from a corresponding number of company shares after the grant date. Instead of exercising a stock option, you...

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...

UPDATED! What do surveys and examples reveal about the effects of mandatory expensing and other developments on my stock grants? This is premium content


A summary of data in surveys from over 10 major consulting and research firms shows that...

Why are many companies considering stock appreciation rights (SARs) as an alternative to stock options? This is premium content


FAS 123(R) requires the expensing of stock options. This makes accounting for stock options and stock-settled SARs similar, leading some companies...

Are stock appreciation rights (SARs) a better deal for me than stock options? This is premium content


The personal economic benefits of SARs are...

How do stock appreciation rights (SARs) differ from stock options, restricted stock, and RSUs? This is premium content


Stock appreciation rights entitle you to stock (or sometimes cash) that equals the amount...

How do I exercise stock appreciation rights? This is premium content


Unlike with stock options, you have no exercise cost to obtain the appreciation spread above...

How does a stock split affect my stock appreciation rights? This is premium content


Most stock plans automatically adjust your SARs for the stock split. Your number of SARs will be adjusted...

How are stock appreciation rights taxed? This is premium content


When you you exercise stock appreciation rights, depending on the plan's design and practices, you receive...

For NQSOs or SARs exercised on the last business day of 2009, or for restricted stock that vests on that day, is the income taxable in 2009 or 2010? This is premium content


All exercises with an exercise date in 2009, and all restricted stock with a vesting date in 2009, will be included in 2009 taxes and on your W-2 for 2009, and will count...

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Taxes   

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.