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Additions & Updates at myStockOptions.com: July, August, and September 2009

3rd QUARTER 2009

TAX CENTER

CONTENT TOPICS: Articles and FAQs

GLOBAL TAX GUIDE: Updates for Australia, Canada, China, Germany, Israel, and more

GLOSSARY: New terms include fungible share pool, multiplier model, totalization agreement, and more

ASK THE EXPERTS:

  • Anything I can do with stock options that have an exercise price higher than the current stock price and are about to expire?
  • Can I have my company use a higher withholding rate?

MSO Pro is our membership level for financial and wealth advisors. Content with the This is premium content symbol requires Premium or Pro Membership at myStockOptions.com.


TAX CENTER

Can stock grant income affect my eligibility for the Making Work Pay Credit available under the 2009 stimulus law?

Do you have a simple chart that compares the tax treatment of stock options, restricted stock, RSUs, and 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? This is premium content

How is capital gain calculated?

How is my performance share grant taxed? This is premium content

How soon after my restricted stock vests must the IRS receive my withholding taxes? This is premium content

What are the tax consequences of exercising an ISO?

Even though no withholding is required for ISOs, can I still pay the federal and state taxes when I make a cashless exercise? This is premium content

Are taxes withheld from the spread when you buy stock under a tax-qualified employee stock purchase plan?

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CONTENT SECTIONS

Basics

Basics: Underwater Options

How may the downturn in the stock markets and the economy affect my company's stock grant practices?

Strategies For Negotiating A Compensation Package In Down Markets This is premium content

What factors should I consider in accepting an option exchange, and what is the process? This is premium content

What approaches do companies apply to underwater stock options? This is premium content

What is an options exchange? This is premium content

Can my ESPP go underwater or be affected in other ways by a down market? This is premium content

Basics: Grants

If my stock options are scheduled to expire on a holiday or a weekend, is the last possible exercise date before or after then? This is premium content

What is the difference between variable and fixed stock option grant guidelines? This is premium content

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Advisors, Have You Heard About MSO Pro?
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Financial Planning

Financial Planning: Year-End Planning

Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs

Stockbrokers' Secrets (Part 7): Year-End Planning For ISOs This is premium content

Ten Ideas For Year-End Tax Planning With Stock Options And Company Stock This is premium content

What are some year-end strategies for stock options and restricted stock? This is premium content

For NQSOs or SARs exercised on the last business day of 2009, or for restricted stock that vests on that day, is the income taxable in 2009 or 2010?

At the end of the year, should I exercise my in-the-money options and sell the stock to take advantage of netting the gains against my short-term capital losses from this year (or those that were carried forward from last year)? This is premium content

Will my income from restricted stock vesting be netted against my short-term capital losses from this year (or those that were carried forward from last year)? This is premium content

Financial Planning: Strategies

Psychological Factors Affect Your Stock Option Exercise Decisions

Financial Planning: Advanced Strategies

Equity Compensation Strategies For Down And Rising Markets This is premium content

How Tax Rate Changes Impact Stock Grant Strategies (Part 2): Restricted Stock This is premium content

Financial Planning: High Net Worth

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? This is premium content

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Restricted Stock & Restricted Stock Units

Which do companies grant more often: restricted stock or restricted stock units (RSUs)? This is premium content

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? This is premium content

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

Restricted Stock: Performance Shares

How is my performance share grant taxed? This is premium content

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? This is premium content

What happens to my performance shares in an acquisition of my company? This is premium content

Restricted Stock: Taxes Advanced

What are some year-end strategies for stock options and restricted stock? This is premium content

How Tax Rate Changes Impact Stock Grant Strategies (Part 2): Restricted Stock This is premium content

My company is now granting restricted stock, and the current share price is much lower than I think it will be in a few years. Any tax-planning ideas? This is premium content

How soon after my restricted stock vests must the IRS receive my withholding taxes? This is premium content

Will my income from restricted stock vesting be netted against my short-term capital losses from this year (or those that were carried forward from last year)? This is premium content

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NQSOs

NQSOs: Taxes

For NQSOs or SARs exercised on the last business day of 2009, or for restricted stock that vests on that day, is the income taxable in 2009 or 2010?

NQSOs: Taxes Advanced

What are some year-end strategies for stock options and restricted stock? This is premium content

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ISOs & AMT

ISOs: Basics

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? This is premium content

ISOs: Taxes

What are the tax consequences of exercising an ISO?

How am I taxed on my gain from a sale of stock that I acquired in an ISO exercise? This is premium content

ISOs: Taxes Advanced

Stockbrokers' Secrets (Part 7): Year-End Planning For ISOs This is premium content

What are some year-end strategies for stock options and restricted stock? This is premium content

Even though no withholding is required for ISOs, can I still pay the federal and state taxes when I make a cashless exercise? This is premium content

ISOs: AMT & AMT Advanced

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? This is premium content

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Employee Stock Purchase Plans (ESPPs)

Employee Stock Purchase Plans: Basics

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? This is premium content

Employee Stock Purchase Plans: Advanced

Can my ESPP go underwater or be affected in other ways by a down market? This is premium content

Employee Stock Purchase Plans: Taxes

Are taxes withheld from the spread when you buy stock under a tax-qualified employee stock purchase plan?

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Stock Appreciation Rights (SARs)

Stock Appreciation Rights: Taxes

What are some year-end strategies for stock options and restricted stock? This is premium content

For NQSOs or SARs exercised on the last business day of 2009, or for restricted stock that vests on that day, is the income taxable in 2009 or 2010?

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Job Events

Job Events: Job Search & Negotiation

Strategies For Negotiating A Compensation Package In Down Markets This is premium content

How may the downturn in the stock markets and the economy affect my company's stock grant practices?

Job Events: Termination

If I lose my job but I am then rehired, can unvested stock options be reinstated, or can the exercise period of my vested options be extended to the end of the original term?

How much time do I have for exercising vested stock options after my employment ends?

If my employment agreement gives me longer after termination to exercise my stock options than the stock plan and grant agreement do, which controls?

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Life Events

Life Events: Retirement Plans

When should I start taking Social Security benefits?

I worked in one state but have retired to another, where I plan to exercise my stock options. Will I be taxed by the state I worked in when I received the grant or by my new state?

Life Events: Retirement Plans

How do stock grants affect the income limits for Roth IRA contributions or conversions? This is premium content

Life Events: Divorce

How do I obtain details of my estranged spouse's stock grants for negotiating our divorce agreement? This is premium content

Are stock grants considered in determining child support and alimony payments? This is premium content

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SEC Law & Rule 10b5-1 Trading Plans

SEC Law: Basics

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

SEC Law: Insider Trading

What is insider trading? Do you have to be an "insider" or executive to commit it?

SEC Law: Rule 10b5-1 Trading Plans

What are best practices for Rule 10b5-1 trading plans? This is premium content

SEC Law: Rule 144 & Section 16

Can I exercise stock options or sell company stock not included in my initial filing of ownership on Form 3? This is premium content

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M&A

M&A Impact

What happens to my performance shares in an acquisition of my company? This is premium content

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Pre-IPO

Pre-IPO: Basics

I have founder's stock that has become subject to forfeiture and transfer restrictions required by new investors. Does my stock become taxable to me, or do I need to make a Section 83(b) election? This is premium content

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GLOBAL TAX GUIDE This is premium content

UPDATED OR EXPANDED

Australia
Canada
China
Denmark
Germany
India
Israel

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GLOSSARY

NEW!

COC
ERISA
Fungible Share Pool
Multiplier Model
Relative Total Shareholder Return Program
Relative TSR
RNOR
Totalization Agreement

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ASK THE EXPERTS

NEW!

I have 12,000 stock options with an exercise price of $57. My company's stock price is $44 (it was as low as $32 a few months ago). The options will expire at the end of the year, so unless I exercise them before then, I will lose them. Is there anything you can do with stock options that have a price higher than the current stock price and are about to expire? Can I get a tax loss for the negative spread if I exercise them?

I plan to exercise my stock options soon. My marginal tax rate is higher than the 25% federal withholding rate that my company always uses for exercises of nonqualified stock options and the vesting of restricted stock. Can I have my company use a higher withholding rate? I don't want to be stuck with owing more taxes when I file my tax return.

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