http://www.mystockoptions.com Our latest content on stock options, ESPPs, restricted stock, stock appreciation rights (SARs), and other stock option compensation for employees and executives. Copyright 2000-2009 myStockPlan.com, Inc. en-us Fri, 20 November 2009 07:05:00 EST http://www.mystockoptions.com/faq/index.cfm/ObjectID/D943A565-30A9-11D4-B9080008C79F9E62 This depends on your financial situation, on whether your decisions should be entirely tax-driven, on what you did earlier in the year, on your outlook for your company's stock price, and on the prospects for changes in tax law during the year ahead. http://www.mystockoptions.com/faq/index.cfm/ObjectID/5847AE52-3FF2-4F34-A2EE62CF1F288AC1 The grant itself has no impact. The compensation income generated from exercise or vesting can affect... http://www.mystockoptions.com/faq/index.cfm/ObjectID/A89202E6-C505-4328-9C785FABAEE5CE9E Changes in executive and equity pay practices during the current downturn may eventually be far more wrenching than those caused by the 2000–2002 market drop. The focus in stock compensation has shifted from adjusting grant practices for mandatory exp http://www.mystockoptions.com/articles/index.cfm/ObjectID/8865D32B-3222-4449-B192B4C05392CEEF NEW! Although stock prices have risen from record lows, many employee stock options remain underwater. However, this is an opportune time to benefit from the current environment. This article presents a range of ideaChris Murphy http://www.mystockoptions.com/faq/index.cfm/ObjectID/64C3C1C3-277F-4D9B-8D7AC66248F6108F 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 http://www.mystockoptions.com/faq/index.cfm/ObjectID/DC69338E-E012-4901-8CD0385BB805D4B3 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... http://www.mystockoptions.com/faq/index.cfm/ObjectID/39964F5B-5996-45D2-B4E0E84A49C86891 While being rehired is great news, the bad news is that the unvested options were canceled or forfeited when you were laid off, regardless of the reason for termination. As for the vested options... http://www.mystockoptions.com/articles/index.cfm/ObjectID/B65CE489-AA17-4318-9A22487EC6465F4D NEW! Your option grant terms and the behavior of your company's stock price are only part of your financial-planning story in volatile markets. Equally important is the price movement of what you will buy with the prTom Davison http://www.mystockoptions.com/faq/index.cfm/ObjectID/854ABF0F-4C7E-4F86-B1321FAFD84014B7 Yes. The credit has income limits, so a big enough spike in your income from a stock compensation could push you out of the credit range or complicate your tax return... http://www.mystockoptions.com/articles/index.cfm/ObjectID/1D6AC29D-DC8A-452D-A990D040DEDF7B4B NEW! A down market provides ideal circumstances for negotiating a larger stake of equity compensation as part of your pay package. With companies looking to conserve cash and find effective ways to recruit, retain, aChris Murphy http://www.mystockoptions.com/articles/index.cfm/ObjectID/07BF629E-4A3F-490A-B8D2350F15F588F7 NEW! A regulatory change in 2009 by the SEC now lets unexercised employee options act as collateral for listed publicly traded options. Learn about the rules, possibilities, and limits of this technique.Robert Gordon http://www.mystockoptions.com/faq/index.cfm/ObjectID/C605A454-9C7F-45D8-B5BEB00C521C3BEF The number of companies, and their employees, with underwater stock options has substantially increased, especially since the historic drop of the stock markets in October 2008. Various surveys and corporate examples show that... http://www.mystockoptions.com/faq/index.cfm/ObjectID/3517A126-6683-11D4-AF69000102460375 Yes. People who live in high-tax states and itemize tax deductions or who have significant personal exemptions can easily owe more in AMT than in regular taxes. See the figures in the table below, which estimate the tipping point for the positive adju http://www.mystockoptions.com/faq/index.cfm/ObjectID/63A1E711-FE29-457B-A1E551C41373A076 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... http://www.mystockoptions.com/faq/index.cfm/ObjectID/5566ADB5-0AD9-4DF3-A7A6A8F21D64BE28 The imposition of forfeiture, transfer, and buyback restrictions on you when a new investor acquires stock... http://www.mystockoptions.com/faq/index.cfm/ObjectID/62B1AA11-8411-4F13-88380B6E73C0CA86 You will need to hire a lawyer. Most likely... http://www.mystockoptions.com/faq/index.cfm/ObjectID/C8A18A10-1D63-4A82-A32A5165EA7B5653 You need to check your stock plan's provisions and the procedures/practices followed by your company or any outside stock plan administration firm. Usually... http://www.mystockoptions.com/articles/index.cfm/ObjectID/E19CF7B6-64E9-4CF9-9E0F9304DF2ACB50 NEW! The grantor-retained annuity trust (GRAT) is one of the best techniques currently available for transferring company stock or other investable assets to family members with little or no estate or gift tax cost. Elyse G. Kirschner and Carlyn S. McCaffrey http://www.mystockoptions.com/faq/index.cfm/ObjectID/26BCB6F5-4001-4F28-8AC094CA1FBA1762 Uncertainty, and even inconsistency, surrounds this situation. For tax purposes it does not matter that you must actually retire to vest the shares. With restricted stock, taxation is triggered when the grant is... http://www.mystockoptions.com/articles/index.cfm/ObjectID/5AA692F6-C556-11D4-AF76000102460375 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.W.E.B. Bantling and Michael Beriss http://www.mystockoptions.com/articles/index.cfm/ObjectID/4BBB83DC-7B3A-4D2B-8AA489CD24E24349 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.Bruce Brumberg http://www.mystockoptions.com/articles/index.cfm/ObjectID/5AA69221-C556-11D4-AF76000102460375 UPDATED FOR 2009! You are doing some year-end or year-beginning tax planning with your stock options and company stock. While investment objectives, not tax considerations, should generally drive your decisions, here are 10 ideas to review to prevent paying more taxes than necessary. http://www.mystockoptions.com/articles/index.cfm/ObjectID/0E38632B-768F-4A08-A446B71F095C442E Avoid the mistakes others made during prior ups and downs in the stock markets. Common mistakes arise in nine different situations, including termination, mergers, financial planning, term expiration, and life events.Beth Walker http://www.mystockoptions.com/articles/index.cfm/ObjectID/26A61889-283B-11D4-B9070008C79F9E62 It is tempting to exercise and sell your stock options when your company's stock price hits new highs or becomes worryingly volatile. However, this decision may not be in your best long-term financial interest. This article exames the psychological factors that can, along with economic motives, influence your stock option choices.Professor Steven Huddart http://www.mystockoptions.com/articles/index.cfm/ObjectID/6966FBA7-FCA8-429E-97F4760A3B4B3A79 The stock markets will one day rise again. When they do, question the urge to exercise your options for quick profits as soon as possible: exercising too early can be a big mistake.Michael Beriss http://www.mystockoptions.com/articles/index.cfm/ObjectID/B1750B46-204C-477F-A2F82EE536C70D9A 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.Richard Friedman http://www.mystockoptions.com/articles/index.cfm/ObjectID/3C81D98D-16D3-45C7-82916B8D6168B638 Vesting is another crucial time for making decisions about your restricted stock. Decisions include what tax-withholding method to use, whether you should hold or sell the stock, and what account to keep the shares or cash in after vesting.Tom Davison http://www.mystockoptions.com/articles/index.cfm/ObjectID/FEAFAEBB-3B83-4D15-9C3D77F1AF99FDF1 Your company's employee stock purchase plan (ESPP) may be one of the best employee benefits in your total compensation package. However, to maximize the value of your ESPP, you need to understand how it works. This starts with knowing its basic structure and key terms, and how ESPPs work in both up and down markets.Alisa Baker http://www.mystockoptions.com/articles/index.cfm/ObjectID/F381C069-EA0E-45BB-853AC3117887115E Employee stock purchase plans (ESPPs) are popular and prevalent at most public companies. However, the structure of these plans is changing. These modifications may affect your decision to participate in your ESPP and its place in your financial planning.Bruce Brumberg http://www.mystockoptions.com/articles/index.cfm/ObjectID/D014F6E5-72B2-48A6-994BB222445373FE You're ready to delve deeper into how and when different taxes apply to ISOs, including the AMT. You need to consider taxes at exercise and at sale to put together a strategy that maximizes the value of your options.Marilyn Renninger http://www.mystockoptions.com/articles/index.cfm/ObjectID/A6D7D117-BF38-4EDA-AE2306F4C119A53E The tax reductions of the past few years have brought both good and bad news for holders of incentive stock options (ISOs). While you may have lower capital gains rates when you hold the shares long enough after exercise, it's harder to avoid the risks of the alternative minimum tax (AMT) and to fully recoup any AMT credit.Alan Ungar http://www.mystockoptions.com/articles/index.cfm/ObjectID/47878A79-AF88-4502-A8B536A069A95DD6 Your stock options and restricted stock are important for your retirement planning. Understand the related issues and explore strategies, whether you are planning for retirement now, are nearing retirement, or have retired already.Carol Cantrell http://www.mystockoptions.com/articles/index.cfm/ObjectID/337EC7FF-E522-4761-A1B4EA2C6069444E UPDATED! When you and your spouse decide to split, your stock options will probably be divided too. Become familiar with the crucial issues related to stock options in divorce, including the treatment of vested and unvested stock grants, approaches to valuation, and the division of options in the property settlement.Linda Olup http://www.mystockoptions.com/articles/index.cfm/ObjectID/E9A2332B-D74B-4CCE-8C13F705E5191D33 Insider trading restrictions can cause constant headaches for executives and their companies. Rule 10b5-1 trading plans are an ideal solution when they are properly drafted and implemented.Darryl Rains and Sunil Kulkarni http://www.mystockoptions.com/articles/index.cfm/ObjectID/8AD65F4A-5869-4730-B89F4630E435C839 Understand the key issues and limits of hedging NQSOs, including company, SEC, and tax law constraints. Then you can analyze potential hedging strategies for your stock options, such as collars.Robert Gordon http://www.mystockoptions.com/articles/index.cfm/ObjectID/A070411E-7379-48BC-8215C9BA001E6E52 Your company is being acquired. You worry about losing your job and your valuable stock options. In Part 1 we looked at the importance of your option grant terms. Part 2 examines the acquisition's terms and the valuation of your company.Richard Lintermans