Resources: Newsletter Archives
REPORT OF CONTENT ADDED,
UPDATED, REVISED, OR EXPANDED
April, May, and June 2007
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2nd QUARTER 2007: CONTENT ADDED, UPDATED, REVISED, OR EXPANDED |
 TAX CENTER
CONTENT TOPICS: Articles and FAQs
GLOBAL TAX GUIDE: Brazil, Germany, India, UK, and more
GLOSSARY: New terms include kiddie tax, prearranged trading plan, share recycling, sub-plan, and more
ASK THE EXPERTS: With restricted stock, can I do anything to shift the income and taxes to some time after vesting?
Content with the  symbol requires Premium or Pro Membership at myStockOptions.com.
MSO Pro is our membership level for financial and wealth advisors. It lets you track and model stock grants for multiple clients, and provides online tools for communicating with clients.
The second quarter of 2007 kept our editorial team busy with many updates and additions to the award-winning content of myStockOptions.com. Recognizing the excellence of our content and tools, BusinessWeek recently recommended myStockOptions.com in an article about stock options and restricted stock.
New Articles
As growing numbers of baby-boomers near retirement age, we have published the third article in Carol Cantrell's series on using stock compensation for retirement planning. Elsewhere, Part 2 of ESPPs And Your Financial Planning presents varying views from several financial advisors, in their own words, about the role of employee stock purchase plans in your financial and investment strategy.
Cross-Border Taxation For Mobile Employees
Our international coverage continues to grow. Taking An Overseas Assignment: Stock Compensation For Mobile Employees explains the key issues that surround cross-border taxation when employees move between countries during the term of their stock grants. In our continually updated and expanded Global Tax Guide, developments include tax-related changes in India. The fringe benefit tax now applies to stock options, reshaping the tax treatment of options, restricted stock, and ESPPs in this fast-growing economy.
AMT Reform?
We are carefully watching the debate in Congress about reforming the alternative minimum tax (AMT), which is increasingly hitting middle-income taxpayers. See the FAQ where we track developments.
Enhanced Navigation Of FAQs
Finally, we pride ourselves on the ease with which readers can navigate our website. The reorganization of our longest FAQ sections into subcategories has made perusing our content there even easier. You can find this new feature in Basics: Grants, Basics: Vesting, Basics: Exercise, and NQSOs: Taxes Advanced.
Explore Our Award-Winning Library Of Content
Below is a selection of content we added or revised during the second quarter of 2007. Click on any of the section headings: the link will take you to the relevant topic area of the website. To view the content of any title that bears the logo, you must be a Premium or Pro Member of myStockOptions.com.
Please contact us at 617-734-1979 or sales@mystockoptions.com if you would like to receive more information on licensing our content and/or tools, on our custom websites for companies, and on our bulk Premium or Pro Memberships to our public site. Meanwhile, please consider the benefits of an individual subscription, and see who becomes a Premium Member of myStockOptions.com.
—Bruce Brumberg, Editor-in-Chief
Tax Center: Stock Options & SARs
How is the spread at exercise of an NQSO taxed for federal income-tax purposes?
When I hold NQSO shares after exercise, what tax applies when I later sell the stock?
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
After stock options are transferred to my former spouse in divorce, who pays the taxes at exercise? How does my company withhold and report the taxes? When I file an extension to complete my tax return after the IRS deadline, are there any mistakes I should avoid that involve stock grant income?
Tax Center: Restricted Stock & RSUs
What is included in my W-2 in connection with a restricted stock grant?
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Basics: Grants
Do I pay any taxes when stock options are granted to me?
Why is dilution important to me? How do stock grants affect it?
What does it mean when someone says that employee stock options have both face (or intrinsic) value and time value?
Basics: Vesting
Can my stock option grant be designed to vest only when certain performance targets are reached?
Are there different types of vesting schedules? Which are most common?
Basics: Exercise
How is the income at exercise taxed?
Are there any limitations on when I can exercise my options?
Can the exercise of stock options be an insider trading violation?
How is fair market value (FMV) determined for setting my exercise price? What are common company practices?
Basics: Sales
If my company or a third party buys my options for cash, how is this taxed?
Basics: Alternatives
What advantages does receiving restricted stock have over stock options?
What are the features of long-term performance awards, such as performance shares and units? What do surveys say the most commonly used metrics are?
Can my employer give me a choice of stock options, restricted stock, or cash?
How do stock options, ESPPs, and restricted stock differ from the company stock fund or contribution offered under my 401(k) plan?
Basics: Valuation & Expensing
What do examples and surveys show about the effects mandatory expensing is having on my stock grants?
What does it mean when someone says that employee stock options have both face (or intrinsic) value and time value?
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NQSOs: Taxes
How is the spread at exercise of an NQSO taxed for federal income-tax purposes?
When I hold NQSO shares after exercise, what tax applies when I later sell the stock?
NQSOs: Taxes Advanced
Taking An Overseas Assignment: Stock Compensation For Mobile Employees
How is the income at exercise taxed?
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
Is it possible to defer the gains on an NQSO exercise by having the shares delivered in a later tax year?
What are "discounted stock options," and how are they taxed?
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ISOs: Limits
When I am no longer with my company (e.g., because of job loss or disability), will tax-law limits or deadlines dictate when I must exercise an ISO?
ISOs: Taxes Advanced
Taking An Overseas Assignment: Stock Compensation For Mobile Employees
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
ISOs: AMT
What is the "alternative minimum tax"? How likely is its reform?
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Employee Stock Purchase Plans (ESPPs) | Employee Stock Purchase Plans: Rules
ESPPs And Your Financial Planning (Part 2)
Employee Stock Purchase Plans: Taxes
In a divorce agreement, how is my ESPP treated? Is transferring to my former spouse ESPP stock that has not met the holding period a disqualifying disposition?
Employee Stock Purchase Plans: Taxes Advanced
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
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Restricted Stock, Restricted Stock Units, & Performance Shares |
Restricted Stock: Basics
Restricted Stock & RSUs: The Next New Thing In Stock Grants?
What advantages does restricted stock have over stock options?
Are there different types of vesting schedules? Which are most common?
Restricted Stock: Advanced
Can my company set ownership guidelines or require me to retain a certain amount of company stock from a stock option exercise or a restricted stock grant?
What do examples and surveys show about the effects mandatory expensing is having on my stock grants?
What are the features of long-term performance awards, such as performance shares and units? What do surveys say the most commonly used metrics are?
Restricted Stock Units
With restricted stock units, can I defer delivery of the shares at vesting? As a director, can I elect to take part of my retainer as "deferred stock units"?
Restricted Stock: Taxes
What is included in my W-2 in connection with a restricted stock grant?
Restricted Stock: Taxes Advanced
Taking An Overseas Assignment: Stock Compensation For Mobile Employees
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
Restricted Stock: Section 83(b)
If I make a Section 83(b) election to be taxed on the value of my restricted stock at grant, can I sell shares or have my company withhold shares to pay the taxes?
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Stock Appreciation Rights (SARs) | Stock Appreciation Rights: Basics
What do examples and surveys show about the effects mandatory expensing is having on my stock grants?
Stock Appreciation Rights: Taxes
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
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Financial Planning: Strategies
I have vested stock options. What should I do: exercise and hold, exercise and immediately sell, or wait to exercise?
Financial Planning: Advanced Strategies
Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)
Restricted Stock & Trends In Equity Compensation: What Financial Advisors Need To Know
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
What are price and time targets for stock option exercises and sales of company stock?
Financial Planning: Diversification
Can my company set ownership guidelines or require me to retain a certain amount of company stock from a stock option exercise or a restricted stock grant? Financial Planning: High Net Worth
Taking An Overseas Assignment: Stock Compensation For Mobile Employees
Is it possible to defer the gains on an NQSO exercise by having the shares delivered in a later tax year?
As a director, can I elect to take part of my retainer as "deferred stock units"?
Financial Planning: Estate Planning
Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)
Financial Planning: Gifts
What is the tax treatment for gifts of company stock?
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Job Events: Hiring
Taking An Overseas Assignment: Stock Compensation For Mobile Employees
What does it mean when someone says that employee stock options have both face (or intrinsic) value and time value?
Can my employer give me a choice of stock options, restricted stock, or cash?
Job Events: Termination
When I am no longer with my company (e.g., because of job loss or disability), will tax-law limits or deadlines dictate when I must exercise an ISO?
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NEW! Life Events: College Funding
What is the tax treatment for gifts of company stock? Life Events: Divorce
Do I pay any taxes when stock options are transferred to my former spouse as a part of my divorce settlement?
After stock options are transferred to my former spouse in divorce, who pays the taxes at exercise? How does my company withhold and report the taxes?
Instead of transferring stock options to my ex-spouse in the divorce property settlement, can I assign the economic benefits of her/his portion with the right to designate exercise?
In a divorce agreement, how is my ESPP treated? Is transferring to my former spouse ESPP stock that has not met the holding period a disqualifying disposition?
Life Events: Retirement
Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)
Life Events: Retirement Plans
Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)
How do stock options, ESPPs, and restricted stock differ from the company stock fund or contribution offered under my 401(k) plan? Life Events: Death Taxes
When I am no longer with my company (e.g., because of job loss or disability), will tax-law limits or deadlines dictate when I must exercise an ISO?
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M&A Basics
How is the method for treating stock options in a merger or acquisition determined?
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SEC Law & Rule 10b5-1 Trading Plans |
SEC Law: Insider Trading
Insider Trading Prevention & Education
Can the exercise of stock options be an insider trading violation?
Does it matter whether the person who violates the insider-trading laws lives outside the US?
SEC Law: Rule 10b5-1 Trading Plans
What are best practices for Rule 10b5-1 trading plans?
How long do Rule 10b5-1 trading plans last?
Is it possible to violate insider-trading laws by terminating or modifying my Rule 10b5-1 trading plan when I know material nonpublic information?
Can I make trades in company stock outside the Rule 10b5-1 plan?
What are price and time targets for stock option exercises and sales of company stock?
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Pre-IPO: Basics
Is my employer required to buy back my shares when I leave the company?
How is fair market value (FMV) determined for setting my exercise price? What are common company practices?
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GLOBAL TAX GUIDE |
UPDATED OR EXPANDED
Belgium
Brazil
Germany
India
Ireland
United Kingdom
Venezuela
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NEW!
CD&A
kiddie tax
named executive officers
prearranged trading plan
service-based vesting
share recycling
stealth tax
sub-plan
UPDATED OR EXPANDED
Black-Scholes model
discounted stock options
golden parachute
net options
net share transaction
performance shares
performance units
Rule 10b5-1 trading plan
Rule 701
Section 162(m)
share recycling
trading window
transferable stock options (TSOs)
withhold-to-cover
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NEW!
I have received stock options in the past and also now have restricted stock. 3,000 shares of restricted stock will vest next month, my first vesting of this year. Our market price is now $42. With option exercises I could control when I received the income and therefore the timing of the tax hit. With restricted stock, can I do anything to shift the income and taxes to some later time, or I am stuck with this at vesting?
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