Resources: Newsletter Archives
REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - October, November, and December 2006
 TAX CENTER: Annotated examples of Schedule D for company stock sales
CONTENT TOPICS: Articles and FAQs
GLOBAL TAX GUIDE: China, Germany, Italy, Norway
GLOSSARY: New terms include spring-loading, bullet-dodging, and more
ASK THE EXPERTS: How does backdating affect me and the taxes on my grants?
MSO Pro is our new membership level for financial and wealth advisors. Content with the  symbol requires Premium or Pro Membership at myStockOptions.com.
The fourth quarter of 2006 kept our editorial team busy with many updates and additions to the award-winning content of myStockOptions.com.
Prevent Tax Mistakes
Now that the time for year-end planning is over, the tax season beckons. Our articles and FAQs on tax-return topics educate you and help prevent mistakes in the reporting for stock options, restricted stock and RSUs, stock appreciation rights, and employee stock purchase plans. You will find all of this content in the Tax Center, where the special section Reporting Company Stock Sales has annotated examples that show you how to report sales of stock on Schedule D of Form 1040.
A New Route For Claiming AMT Credits
In late December the passage of an extensive federal tax bill introduced a new route for claiming AMT credits (Section 402 on page 61 of the Tax Relief and Health Care Act of 2006). In keeping with our commitment to publishing timely content, we turned quickly on this fresh development to update and expand all of our relevant AMT content.
Explore Our Award-Winning Library Of Content
Below is a selection of content we added or revised during the fourth quarter of 2006. 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 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
Schedule D diagrams! How do I report sales of NQSO stock?
Schedule D diagrams! How do I report sales of ISO stock?
Schedule D diagrams! How do I report sales of SAR stock?
Stock Option Fundamentals (Part 3): Income Taxes And Withholding
Stock Option Fundamentals (Part 5): Incentive Stock Option Taxation & Alternative Minimum Tax
Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)
Do I get a tax credit if I paid AMT when I exercised an ISO? How does it work, and did the tax law of December 2006 change this?
Are there any general guidelines for assessing when I may be hit with the alternative minimum tax? For example, my spouse and I together earn $100,000. Do we still need to worry about AMT liability when I exercise ISOs?
After I have paid AMT for my ISO exercise and hold, what are some mistakes that I must avoid on my tax return?
Is it easy to calculate AMT liability?
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
When I file an extension to complete my tax return after the IRS deadline on April 16, are there any mistakes I should avoid that involve stock grant income?
What happens if I live in state A when my stock options are granted, state B when I perform some of my services, state C when I exercise the options, and state D when I sell the shares?
How is fair market value determined for W-2 reporting of NQSO taxable income at exercise and for tax withholding?
Is there a different withholding rate for supplemental income in excess of $1 million?
How does my employer calculate the amount of withholding due at the exercise of a nonqualified stock option?
I received a notice (CP-2000) from the IRS stating that, according to last year's tax return, I owe money for the cashless exercise of my stock options. I thought I paid all the taxes through withholding at exercise. How do I reply?
Tax Center: Restricted Stock & RSUs
Schedule D diagrams! How do I report restricted stock and RSU sales?
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
When I file an extension to complete my tax return after the IRS deadline on April 16, are there any mistakes I should avoid that involve stock grant income?
Is there a different withholding rate for supplemental income in excess of $1 million?
How are the dividends on restricted stock taxed and reported to me?
Tax Center: ESPPs
Schedule D diagram! How do I report sales of ESPP stock?
When I file an extension to complete my tax return after the IRS deadline on April 16, are there any mistakes I should avoid that involve stock grant income?
Tax Center: Tax Cuts 2003–2006
AMT Credit Relief: Too Good To Be True, But It Is (Part 1)
AMT Credit Relief: Too Good To Be True, But It Is (Part 2)
How The Bush Tax Cuts Still Affect Your Stock Option Planning
Did the tax laws of May 2003 and May and December 2006 change the taxation of incentive stock options? Did it, for example, remove the exercise spread from the calculation of alternative minimum tax?
 Return to table of contents
Basics: Core Concepts
Why do companies grant stock options and other equity awards? How many people have them?
Basics: Grants
What is the process of granting equity awards?
Basics: Exercise
For NQSOs or SARs exercised on the last business day of 2006, or for restricted stock that vests on that day, is the income taxable in 2006 or 2007?
Basics: Sales
Stock Option Fundamentals (Part 3): Income Taxes And Withholding
Basics: Alternatives
Restricted Stock Versus Stock Options: Making A Rational Choice (Part 1)
Can my employer give me a choice of stock options, restricted stock, or cash?
Basics: Underwater Options
If my company or a third party buys my options for cash, how is this taxed?
Return to table of contents
NQSOs: Basics
Stock Option Fundamentals (Part 3): Income Taxes And Withholding
NQSOs: Taxes
How The Bush Tax Cuts Still Affect Your Stock Option Planning
How does my employer calculate the amount of withholding due at the exercise of a nonqualified stock option?
Is there a different withholding rate for supplemental income in excess of $1 million?
What happens if I live in state A when my stock options are granted, state B when I perform some of my services, state C when I exercise the options, and state D when I sell the shares?
Is the spread at exercise of a nonqualified stock option subject to Social Security taxes?
NQSOs: Taxes Advanced
Schedule D diagrams! How do I report sales of NQSO stock?
Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)
How The Bush Tax Cuts Still Affect Your Stock Option Planning
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
I received a notice (CP-2000) from the IRS stating that, according to last year's tax return, I owe money for the cashless exercise of my stock options. I thought I paid all the taxes through withholding at exercise. How do I reply?
Return to table of contents
ISOs: Taxes
Stock Option Fundamentals (Part 3): Income Taxes And Withholding
ISOs: Taxes Advanced
Schedule D diagrams! How do I report sales of ISO stock?
Stock Option Fundamentals (Part 5): Incentive Stock Option Taxation & Alternative Minimum Tax
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
Is writing call options on, or buying put options for, my ISO stock a disqualifying disposition?
What happens if I live in state A when my stock options are granted, state B when I perform some of my services, state C when I exercise the options, and state D when I sell the shares?
ISOs: AMT
Stock Option Fundamentals (Part 5): Incentive Stock Option Taxation & Alternative Minimum Tax
Dr. Strange Tax, Or "How I Learned To Stop Worrying And Love The AMT"
How The Bush Tax Cuts Still Affect Your Stock Option Planning
Do I get a tax credit if I paid AMT when I exercised an ISO? How does it work, and did the tax law of December 2006 change this?
Is it easy to calculate AMT liability?
ISOs: AMT Advanced
AMT Credit Relief: Too Good To Be True, But It Is (Part 1)
AMT Credit Relief: Too Good To Be True, But It Is (Part 2)
Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)
How The Bush Tax Cuts Still Affect Your Stock Option Planning
Did the tax laws of May 2003 and May and December 2006 change the taxation of incentive stock options? Did it, for example, remove the exercise spread from the calculation of alternative minimum tax?
Are there any general guidelines for assessing when I may be hit with the alternative minimum tax? For example, my spouse and I together earn $100,000. Do we still need to worry about AMT liability when I exercise ISOs?
I know that my ISO exercises will trigger the AMT for me this year or next. What planning strategies should I use that are related to other tax payments and income?
My company allows me to exercise my ISOs early and receive stock subject to a company repurchase right during the vesting schedule. Does my early exercise before vesting affect the calculations for AMT or disqualifying dispositions?
After I have paid AMT for my ISO exercise and hold, what are some mistakes that I must avoid on my tax return?
What ISO strategies can help minimize AMT liability?
Return to table of contents
Employee Stock Purchase Plans: Basics
Schedule D diagram! How do I report sales of ESPP stock?
Are You Taking Full Advantage Of Your Company's Employee Stock Purchase Plan?
Why is a Section 423 ESPP a good deal?
Return to table of contents
Restricted Stock: Basics
What is the process of granting equity awards?
Restricted Stock: Advanced
Restricted Stock Versus Stock Options: Making A Rational Choice (Part 1)
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
Is there a different withholding rate for supplemental income in excess of $1 million?
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?
Restricted Stock Units
With restricted stock units, can I defer delivery of the shares at vesting?
What is the difference between restricted stock and restricted stock units (RSUs)?
Restricted Stock: Taxes
Schedule D diagrams! How do I report restricted stock and RSU sales?
How are the dividends on restricted stock taxed and reported to me?
Return to table of contents
Stock Appreciation Rights: Taxes
Schedule D diagrams! How do I report sales of SAR stock?
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
Is there a different withholding rate for supplemental income in excess of $1 million?
Return to table of contents
 Advisors, Have You Heard About MSO Pro?Made just for you, with tools to track and model grants for multiple clients, and proactive communications to build relationships. Click here for more information.
Financial Planning: Strategies
How The Bush Tax Cuts Still Affect Your Stock Option Planning
Financial Planning: Advanced Strategies
AMT Credit Relief: Too Good To Be True, But It Is (Part 2)
Retirement Planning With Your Stock Options And Other Stock Compensation (Part 1: Pre-Retirement Planning)
Retirement Planning With Your Stock Options And Other Stock Compensation (Part 2: Retirement Year)
Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)
What provisions in the American Jobs Creation Act, particularly on deferred compensation, can affect my stock grants?
What ISO strategies can help minimize AMT liability?
Financial Planning: Diversification
What is a concentrated stock position, and what can I do to protect myself and get cash for other purposes?
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
Strategies For Hedging Concentrated Stock Positions (Part 1)
Is writing call options on, or buying put options for, my ISO stock a disqualifying disposition?
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: Gifts
Gifts: Save On Estate Taxes With Transferable Stock Options
What is the tax treatment for gifts of company stock?
Financial Planning: Dividends
How are the dividends on restricted stock taxed and reported to me?
Financial Planning: Year-End Planning
Ten Ideas For Year-End Stock Option Tax Planning
AMT Credit Relief: Too Good To Be True, But It Is (Part 1)
Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)
Stockbrokers' And Financial Planners' Year-End Secrets (Part 3): What We Tell Our Best Clients
For NQSOs or SARs exercised on the last business day of 2006, or for restricted stock that vests on that day, is the income taxable in 2006 or 2007?
What are some year-end strategies for stock options, stock appreciation rights, and restricted stock?
Return to table of contents
Job Events: Hiring
Can my employer give me a choice of stock options, restricted stock, or cash?
Return to table of contents
Life Events: Divorce
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?
Life Events: Retirement
Retirement Planning With Your Stock Options And Other Stock Compensation (Part 2: Retirement Year)
Life Events: Retirement Plans
How do stock grants affect the income limits of a Roth IRA?
Return to table of contents
M&A Impact
Can an acquisition of my company accelerate the vesting of my stock options?
Return to table of contents
SEC Law: Insider Trading
How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock (Part 1)
SEC Law: Rule 10b5-1 Trading Plans
Can my company force me to use a Rule 10b5-1 trading plan to sell stock?
What will happen to my Rule 10b5-1 plan if I die?
When I sell stock under a Rule 10b5-1 plan, do I report the sale differently on Form 4?
SEC Law: Rule 144
How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock (Part 2)
SEC Law: Section 16
When I sell stock under a Rule 10b5-1 plan, do I report the sale differently on Form 4?
What are Forms 3, 4, and 5? When are they filed with the SEC?
What is the penalty for a late or omitted filing of Form 3, 4 or 5?
Return to table of contents
Pre-IPO: Early Exercise
My company allows me to exercise my ISOs early and receive stock subject to a company repurchase right during the vesting schedule. Does my early exercise before vesting affect the calculations for AMT or disqualifying dispositions?
Return to table of contents
UPDATED OR EXPANDED
China
Germany
Italy
Norway
Return to table of contents
NEW!
Bullet-Dodging
Spring-Loading
Supplemental Income
VPF
UPDATED OR EXPANDED
Alternative Minimum Tax (AMT)
AMT Credit
Call Option
Covered Call
Dividend Equivalent Rights (DERs)
Exercise
Put Option
Section 162(m)
Supplemental Wages
Transferable Stock Options (TSOs)
Variable Prepaid Forward
Worthless Stock
Return to table of contents
NEW!
I have about 12,000 stock options in a company that may have backdated more stock options than just those of the senior executives. How does this backdating affect me and the taxation of my stock grants?
Return to table of contents
|
