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Additions & Updates at myStockOptions.com: 1st Quarter 2010

1st QUARTER 2010

TAX CENTER

CONTENT TOPICS: Articles and FAQs

GLOBAL TAX GUIDE: Updates for Australia, Canada, Denmark, India, Sweden, and Taiwan

GLOSSARY: New terms include ASC 718 and market stock units

ASK THE EXPERTS:

  • My company is offering me stock options. What are they? Is this a good offer that I should accept?
  • On my tax return, what do I report as my tax basis for a sell-to-cover exercise?

TAX CENTER

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Parts 1 and 2)

NEW! Can the IRS seize stock options or restricted stock under a tax lien?

Can stock grant income affect my eligibility for the Making Work Pay Credit in 2010?

What is "capital gain"? Have recent tax laws changed the rates?

Are there any strategies for paying estimated taxes on income from stock options and restricted stock?

Will I receive any mandatory information statement from my company about exercises, purchases, and sales related to my stock options and/or employee stock purchase plan?

If my restricted stock vests on a holiday or a weekend, is its value based on the stock price on the day before or the day after the vesting date?

My company's ESPP is not tax-qualified under Internal Revenue Code Section 423. What is the tax treatment for a stock purchase and sale?

Does the American Jobs Creation Act, particularly Section 409A on deferred compensation, affect my stock grants?

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CONTENT SECTIONS

Basics

NEW! Are public resources available for doing research on a company's stock compensation practices, the grants it is making, and the holdings of its executives?

Stock Option Terms: What You Can Expect

Which do companies grant more often: restricted stock or restricted stock units (RSUs)?

Why do companies grant stock options and other equity awards? How many people have them?

Can I have the exercise price of a new stock option grant lowered or backdated? What is the controversy over backdating?

How common are stock options, restricted stock, and performance shares outside the US? Do surveys show trends?

What do surveys and examples reveal about the effects of mandatory expensing and other developments on my stock grants?

How may the economic downturn affect my company's stock grant practices?

What approaches do companies apply to underwater stock options?

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Advisors, Have You Heard About MSO Pro?
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Financial Planning

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Parts 1 and 2)

NEW!If my company requires me to have a foreign bank or brokerage account because of the stock plan, does this require any special filings with the IRS?

NEW! Are public resources available for doing research on a company's stock compensation practices, the grants it is making, and the holdings of its executives?

NEW! When I take an international assignment, will taxes on my stock compensation be equalized?

NEW! Should I make a Section 83(b) election for my restricted stock grant?

Are there any strategies for paying estimated taxes on income from stock options and restricted stock?

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Restricted Stock & Restricted Stock Units

NEW! Restricted Stock Units (Part 1): Understanding The Core Concepts

NEW! Should I make a Section 83(b) election for my restricted stock grant?

NEW!If my restricted stock vests on a holiday or a weekend, is its value based on the stock price on the day before or the day after the vesting date?

NEW! Can the IRS seize stock options or restricted stock under a tax lien?

Which do companies grant more often: restricted stock or restricted stock units (RSUs)?

What is the difference between restricted stock and performance shares or units?

When my restricted stock vests, will I need to make estimated tax payments?

Are there any strategies for paying estimated taxes on income from stock options and restricted stock?

How common are stock options, restricted stock, and performance shares outside the US? Do surveys show trends?

What types of company goals are most commonly set for performance shares and units? What do surveys show about the performance metrics that companies use?

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NQSOs

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Parts 1 and 2)

After I exercise NQSOs, will I need to make estimated tax payments?

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ISOs & AMT

Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Parts 1 and 2)

Will I receive any mandatory information statement from my company about exercises, purchases, and sales related to my stock options and/or employee stock purchase plan?

If I exercise ISOs and hold the stock (triggering AMT for the spread) or sell the stock in a disqualifying disposition, will I need to make estimated tax payments?

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Employee Stock Purchase Plans (ESPPs)

Will I receive any mandatory information statement from my company about exercises, purchases, and sales related to my stock options and/or employee stock purchase plan?

How do you calculate the $25,000 annual purchase limit and the maximum number of shares you can buy?

What is a "grant date" in an ESPP?

My company's ESPP is not tax-qualified under Internal Revenue Code Section 423. What is the tax treatment for a stock purchase and sale?

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Stock Appreciation Rights (SARs)

If I exercise stock appreciation rights (SARs), will I need to make estimated tax payments?

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Job Events

NEW! Negotiating And Structuring Your Stock Compensation (Part 3): Equity Rights When You Terminate Employment

NEW! When I take an international assignment, will taxes on my stock compensation be equalized?

Can I have the exercise price of a new stock option grant lowered or backdated? What is the controversy over backdating?

Stock Option Terms: What You Can Expect

I may leave my company to become a consultant, retire, or take another job. Will taxes still be withheld on my NQSOs, SARs, and/or restricted stock as they were when I was an employee? What if I live in another state when I exercise them?

What happens if I terminate my employment before an option grant is fully vested?

How may the economic downturn affect my company's stock grant practices?

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Life Events

Funding Your Child's College Education With Stock Options And Other Stock Grants (Part 1, 2, and 3)

NEW! Are stock options, restricted stock, and ESPPs subject to ERISA requirements and regulations?

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 should I start taking Social Security benefits?

Does my stock option exercise or restricted stock vesting affect the annual earnings limit of Social Security and reduce my benefits?

What are the federal income tax consequences if my estate or beneficiary sells stock that I had received from a prior option exercise or from restricted stock vesting?

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SEC Law & Rule 10b5-1 Trading Plans

Can the SEC, the Treasury, or my company take away stock option gains, restricted stock, and performance shares after accounting fraud has occurred?

What are best practices for Rule 10b5-1 trading plans?

Must I still file Form 4 for my company stock purchases and sales after I leave the company, or if I want to indicate that I am no longer an insider? Do the rules for matching short-swing profits still apply?

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M&A

My Company's Being Acquired: What Happens To My Stock Options? (Parts 1, 2, and 3)

NEW! What could happen to my restricted stock in an acquisition of my company?

What is the tax treatment of my restricted stock in an acquisition?

What will happen to my vested stock options if my employer is acquired by another company?

According to the terms of the acquisition, all my stock options will be converted to those of the buyer. How do I ascertain the number of options I will have and the exercise price?

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Pre-IPO

Any survey data on stock grants in private companies?

How does a private company decide on the size of a stock grant? Any data on grant sizes?

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GLOBAL TAX GUIDE This is premium content

UPDATED OR EXPANDED

Australia
Canada
Denmark
India
Sweden
Taiwan

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GLOSSARY

NEW!

ASC 718
Discretionary Award
Market Stock Units
Section 3121(v)

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ASK THE EXPERTS

NEW!

My company is offering me stock options. What are they? Is this a good offer that I should accept?

At exercise, I sold just enough shares to cover my exercise cost and taxes for 2,000 stock options. The exercise price was $10 per share and the market price was $35. My W-2 shows $50,000 of income from the exercise. On my tax return, what do I report as my tax basis? Is it the full $50,000, or is it only the value of the shares I sold in the sell-to-cover exercise?

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SUBSCRIPTION & LICENSING INFORMATION

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