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

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

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.

What You Need To Know About Stock Appreciation Rights (SARs): 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.

How To Report Sales Of Company Stock On Your Tax Return

The myStockOptions.com Tax Team
Learn how to report sales of stock on your tax return. Annotated diagrams of Form 8949 and Schedule D help you make sense of the reporting rules.

VIDEO! Tax-Return Forms & 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.

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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 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

You will need to gather certain information to complete your tax return. The broker will send you IRS Form 1099-B for the proceeds...

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 tax-return errors that lead to paying more than necessary or (perhaps worse) an IRS review. Learn how to prevent expensive mistakes...

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...

What are the big changes in 2014 with reporting stock sales on my tax return? Why have these changes occurred?

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

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? This is premium content

Your brokerage firm issues IRS Form 1099-B by mid-February in the year following the year of sale. Form 1099-B is an important document that you must have to complete your tax return...

In the cost basis I use to report sales of company stock on my tax return, what part comprises the W-2 income from stock compensation or an ESPP? This is premium content

When your W-2 income is added to the price you paid for the stock, this is your cost basis on your tax return. The table below presents the compensation portion of your tax basis for all types of stock grants and ESPPs...

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