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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.


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


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Stock Appreciation Rights 101 (Part 2) This is premium content

Bruce Brumberg
Stock appreciation rights (SARs) are garnering interest among companies. Part 2 discusses taxes, IRS concerns, and why companies like SARs.

Stock Appreciation Rights 101 (Part 1)

Bruce Brumberg
Stock appreciation rights (SARs) are being granted by some companies. To help you understand SARs, Part 1 explains the "appreciation," the role of exercises, and taxes at exercise.

NEW! Living And Working In Multiple States: Challenges For Mobile Employees In The USA This is premium content

David Johnson and Mark Miller
Moving between US states, whether to relocate permanently or simply to travel for business, can involve tax complications for people who have stock compensation. This article presents the tax issues that you may encounter when you leave your home office and cross a state line.

Form 8949 and Sch. D diagrams! How To Report Sales Of Company Stock On Your Tax Return

myStockOptions Editorial Team
If you sold in 2015 any shares that you acquired from equity compensation or an ESPP, you will need to report the sale on the federal tax return that you file in 2016. Learn here what you must know to avoid expensive mistakes and unwanted IRS attention. Our annotated diagrams of Form 8949 and Schedule D can help you make sense of the reporting rules.

VIDEO! Tax-Return Forms And Reporting Rules For Stock Sales

Bruce Brumberg
Learn how to prevent costly tax return mistakes with this animated presentation on IRS Form 1099-B, IRS Form 8949, and Schedule D.

VIDEO! Tax-Return Reporting Of Company Stock Sales: How To Avoid Overpaying Taxes

myStockOptions Tax Team
Learn the rules for reporting stock sales on your tax return, along with costly errors to avoid if the shares you sold came from stock options, restricted stock/RSUs, stock appreciation rights, or an employee stock purchase plan. Among other issues, you must understand your "cost basis" to avoid overpaying your taxes. Running time: 8:05.

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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...

What are the top 10 questions I should ask about my stock appreciation rights? This is premium content

You should know the answers to the following questions. Understanding the topics involved will help you make the most of your stock appreciation rights (SARs) and prevent costly mistakes...

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...

W-2 diagram What will my W-2 show after I exercise stock appreciation rights? This is premium content

The gain from your SARs exercise(s) is totaled on the W-2 with other income in the following boxes...

What are the biggest mistakes related to stock appreciation rights (SARs) that I can make on my tax return, and how can I avoid them? This is premium content

It is all too easy to make costly tax-return errors that attract unwanted IRS attention. Learn how to prevent mistakes...

UPDATES! What are some major issues to be aware of when reporting stock sales on my tax return? Why have these issues arisen?

Major changes have occurred in the tax reporting for stock sales during the past few years, making accurate tax-return reporting more complex and difficult...

What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase? This is premium content

Form 1099-B or the equivalent substitute statement is necessary for the accurate completion of your tax return....

UPDATES! How have IRS Form 1099-B and cost-basis reporting changed for sales of stock acquired from my stock options, restricted stock, or ESPP? What do I need to do differently because of the changes?

If you sold shares during the calendar year, your brokerage firm will issue IRS Form 1099-B by mid-February of the following year. This is an important document that you must have to complete your tax return for the year of sale...

Form 8949 and Sch. D diagrams How do I report sales of shares from stock appreciation rights on my federal income-tax return? This is premium content

Whether you sell all the stock at exercise or hold the stock and later sell it, you need to complete Form 8949 and Schedule D for the year of...

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...

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