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South Africa Spain Sweden Switzerland Taiwan United Kingdom United States Venezuela Newsletters Preventing Tax Errors: myStockOptions.com Newsletter No. 52 myNQDC.com Alert (Jan. 16, 2013): Tax Act's Impact On Nonqualified Deferred Compensation Alert (Jan. 11, 2013): Tax Act's Impact On Stock Comp Year-End Financial & Tax Planning: myStockOptions.com Newsletter No. 51 myNQDC.com Alert (Oct. 25, 2012): Impact On NQDC Plans Of 2013 Adjustments To Qualified Retirement Plan Limits Alert (Oct. 18, 2012): Tax & Year-End Planning For Stock Compensation In 2012 Additions & Updates at myStockOptions.com: 3rd Quarter 2012 Future Tax Rates & Stock Compensation: myStockOptions.com Newsletter No. 50 myNQDC.com Alert (Sept. 19, 2012): Insights & Updates Alert (July 11, 2012): Tax-Planning Developments And New IRS Guidance Additions & Updates At myStockOptions.com: 2nd Quarter 2012 Restricted Stock & RSUs: myStockOptions.com Newsletter No. 49 Alert (Apr. 26, 2012): Post-Tax-Return Planning Additions & Updates At myStockOptions.com: 1st Quarter 2012 myNQDC.com Alert (Apr. 12, 2012): Insights & Updates Preventing Tax Errors: myStockOptions.com Newsletter No. 48 Alert (Jan. 12, 2012): Tax Season Looms With New Forms & Reporting Additions & Updates At myStockOptions.com: 4th Quarter 2011 Year-End Financial & Tax Planning: myStockOptions.com Newsletter No. 47 myNQDC.com Alert: New Expert Insights Alert: Key Updates & Additions At myStockOptions.com (Oct. 19, 2011) Additions & Updates At myStockOptions.com: 3rd Quarter 2011 Employee Stock Purchase Plans: myStockOptions.com Newsletter No. 46 Alert: Summer Reading From myStockOptions.com (July 13, 2011) Additions & Updates At myStockOptions.com: 2nd Quarter 2011 Restricted Stock & RSUs: myStockOptions.com Newsletter No. 45 myNQDC.com: Latest Expert Insights Alert: Planning For Stock Compensation After Tax Season (April 26, 2011) Additions & Updates at myStockOptions.com: 1st Quarter 2011 Preventing Tax Return Mistakes With Stock Compensation: myStockOptions.com Newsletter No. 44 myNQDC.com: Crucial Updates & New Content Tax Alert: Updates For The Tax Return Season Ahead (January 2011) Additions & Updates at myStockOptions.com: 4th Quarter 2010 Tax Deal's Impact On Year-End Planning And Stock Compensation: myStockOptions.com Newsletter No. 43 As Halloween Approaches, Ideas To Make Year-End Planning Less Scary Additions & Updates at myStockOptions.com: 3rd Quarter 2010 Restricted Stock & RSUs: myStockOptions.com Newsletter No. 42 Additions & Updates at myStockOptions.com: 2nd Quarter 2010 Additions & Updates at myStockOptions.com: 1st Quarter 2010 How To Avoid Costly Tax Return Mistakes: myStockOptions.com Newsletter No. 41 Alert: IRA Conversions, Making Work Pay Credit, FBAR Rules, Tax Season (January 20, 2010) Additions & Updates at myStockOptions.com: 4th Quarter 2009 Year-End Planning 2009: myStockOptions.com Newsletter No. 40 Alert: Tax & Year-End Strategies, Negotiating Pay, Tax Changes (October 20, 2009) Additions & Updates at myStockOptions.com: July, August, and September 2009 Employee Stock Purchase Plans: myStockOptions.com Newsletter No. 39, September 2009 Alert: Updates On Strategies & Tax Rules (July 27, 2009) Restricted Stock & RSUs: myStockOptions.com Newsletter No. 38, June 2009 Alert: Tax Season Ends; What's Next? (April 16, 2009) Tax Returns & Tax Cuts: myStockOptions.com Newsletter No. 37, March 2009 Tax Changes & More Ahead: Updates At myStockOptions.com Year-End Planning: myStockOptions.com Newsletter No. 36, December 2008 Alert: Tax Law Changes, Market Volatility, & Underwater Options (October 17, 2008) Market Volatility & Underwater Stock Options: myStockOptions.com Newsletter No. 35, September 2008 Restricted Stock & RSUs: myStockOptions.com Newsletter No. 34, June 2008 Tax Alert: Stock Compensation Affects Your Tax Rebate (February 27, 2008) Year-End Strategies For Stock Options & Restricted Stock: myStockOptions.com Newsletter No. 33, December 2007 Tax Alert: IRS Still Seriously Looking For Backdated Stock Options (July 2007) Retirement Planning: myStockOptions.com Newsletter No. 31, June 2007 Alert: SEC "Looking At" Rule 10b5-1 Trading Plans (April 2007) Tax Returns: myStockOptions.com Newsletter No. 30, March 2007 Tax Alert: IRS Confirms Taxes Owed For Backdated Stock Options (February 12, 2007) AMT Credits With ISOs: New Tax Law Changes Rules (December 2006) Year-End Strategies For Stock Options & Restricted Stock: myStockOptions.com Newsletter No. 29, December 2006 Employee Stock Purchase Plans (ESPPs): myStockOptions.com Update No. 28 Restricted Stock & Restricted Stock Units (RSUs): myStockOptions.com Update No. 27 Tax Returns: myStockOptions.com Update No. 26 Year-End Planning: myStockOptions.com Update No. 25 ESPPs: myStockOptions.com Update No. 24 Stock Appreciation Rights (SARs): myStockOptions.com Update No. 23 Tax Returns: myStockOptions.com Update No. 22 Year-End Planning: myStockOptions.com Update No. 21 Final IRS Regulations On ISOs Restricted Stock & RSUs: myStockOptions.com Update No. 20 Tax Returns: myStockOptions.com Update No. 19 myStockOptions.com Update No. 18 myStockOptions.com Update No. 17 myStockOptions.com Update No. 16 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED: April, May, and June 2009 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED: January, February, and March 2009 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED: October, November, and December 2008 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED: July, August, and September 2008 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - April, May, and June 2008 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - January, February, and March 2008 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - October, November, and December 2007 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - July, August, and September 2007 College Funding With Stock Compensation: myStockOptions.com Newsletter No. 32, September 2007 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - April, May, and June 2007 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - January, February, and March 2007 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - October, November, and December 2006 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - July, August, and September 2006 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - April, May, and June 2006 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - January, February, and March 2006 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - October, November, and December 2005 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - July, August, and September 2005 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - April, May, and June 2005 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - January, February, and March 2005 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - October, November, and December 2004 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - July, August, and September 2004 REPORT OF CONTENT ADDED, UPDATED, REVISED, OR EXPANDED - April, May, and June 2004

Articles and FAQs Basics     Basics: Core Concepts Restricted Stock 101: Five Essentials Of Restricted Stock & RSUs  Six ESPP Essentials (Part 1): Enrollment, Plan Type, Purchase Timing  Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts  How To Avoid The Most Common Stock Option Mistakes (Part 1)  How To Avoid The Most Common Stock Option Mistakes (Part 2)  A Holistic Approach To Managing Equity Compensation  Five Major Developments In Equity Compensation Of The Past Decade: A Celebration Of Our 10th Anniversary  Stock Option Terms: What You Can Expect  Stock Option Fundamentals (Part 1): Know Your Goals And Terms  How Does Your Company's Stock Plan Compare? (Part 1)  How Does Your Company's Stock Plan Compare? (Part 2)  What Are My Stock Options Worth?  Stockbrokers' Secrets (Part 1): What I Tell My Best Clients About Stock Option Strategy  Stock-Option Basics Sunk By Options What is a stock option?  What advantages does restricted stock give me over stock options?  What is restricted stock? Does it differ from restricted securities?  What is an employee stock purchase plan?  How does an ESPP differ from a stock option plan?  Are all stock options taxed the same?  What is the difference between restricted stock and performance shares or units?  What are stock appreciation rights?  Do you have a chart that compares the tax treatment of stock options, restricted stock, RSUs, and ESPPs?  How do stock options, ESPPs, and restricted stock differ from the company stock fund or contribution offered under my 401(k) plan?  Why do companies grant stock options and other equity awards? How many people have them?  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?  Can limited liability companies use stock options or make other stock grants?  Why doesn't my employer offer me equity compensation?  Are there any limitations on my company's discretion in granting stock options and/or restricted stock?  Are stock options, restricted stock, and ESPPs subject to ERISA requirements and regulations?  What is a stock plan?  What are the important documents I need to understand a stock plan? What are some examples of plans?  Are different types of stock options granted by employers?  UPDATED! How common are stock options, restricted stock, performance shares, and ESPPs outside the US? Do surveys show trends?  UPDATED! When did stock option expensing become mandatory? How does this affect and change my stock grants?  Am I entitled to voting rights or any stock dividends paid to shareholders before I exercise?  Will I receive a copy of my company's annual report?  What is a "nonqualified stock option"?  What is an "incentive stock option"?  Are there different kinds of employee stock purchase plans?  How does a Section 423 ESPP work?  What is a vesting schedule?  UPDATED! What are capital gains and capital losses? What are the capital gains tax rates?  What methods may be used to exercise an option?  Other than paying the exercise price, what else must I do to exercise an option?  When and how is the income at exercise taxed?  What is the standard stock option term? Do options ever expire?  Once my in-the-money options vest, are they mine forever?  How does a compensatory stock option differ from a publicly traded stock option listed in a newspaper's business section?  What is "common stock"?  What is "preferred stock"?  I have little cash. Will I still be able to take advantage of my company's stock options?  What is the SEC?  Do you have any suggestions for additional resources on stock options, equity pay, and employee ownership?      Basics: Benefits Preventing Irrational Decisions About Selling Company Stock Or Exercising Options  Psychological Factors Affect Your Stock Option Exercise Decisions  Stomach Volatility In Your Company's Stock Without Losing Your Mind  Manage Your Expectations To Avoid The Option Blues  From Founders To Decorators, Facebook Riches $1.6 Million For Apple Employees Stocking Up On Motivation When The Share Price Is A Factor In Pay Google Options Make Masseuse A Multimillionaire Options Have Lost Their Luster, But Many Still Lust For Them Are stock options, restricted stock, and ESPP participation free?  Why do companies grant stock options and other equity awards? How many people have them?  Why do many companies grant restricted stock and RSUs instead of stock options?  Do stock options and other equity awards really motivate employees?  Why do stock options offer greater financial benefits than simply buying shares of company stock in the open market?  Why should I care about stock options?  How can I find out whether my employer offers stock options or restricted stock, or has an ESPP?  Why doesn't my employer offer me equity compensation?  If I remain with the company for the duration of the vesting schedule, is there any way I can lose the benefit of my option?  What are the benefits of participating in an employee stock purchase plan?  How much will my options be worth in the future?      Basics: Grants Stock Option Terms: What You Can Expect  How Does Your Company's Stock Plan Compare? (Part 1)  How Does Your Company's Stock Plan Compare? (Part 2)  Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts  Your Stock Grants May Come With Strings Attached  What is the process of granting equity awards?  UPDATED! How have stock-market volatility and the economic downturn changed corporate stock grant practices?  How much are my options worth at grant?  How does a private company decide on the size of a stock grant? Any data on grant sizes?  What does it mean when someone says that employee stock options have both face (or intrinsic) value and time value?  How is my stock grant's exercise price set?  How is fair market value (FMV) determined for setting my exercise price? What are common company practices?  Does the IRS have any rules on setting exercise prices?  What is the standard stock option term? Do options ever expire?  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?  If my stock options are scheduled to expire on a holiday or a weekend, is the last possible exercise date before or after then?  What is a "stock grant agreement"?  What does a stock grant agreement look like, and what terms does it cover? Where can I find samples?  What guidelines do employers use to determine how many stock options or restricted shares to grant?  What is the difference between variable and fixed stock option grant guidelines?  How will I know which type of option I have been granted?  Is it better to be granted nonqualified stock options (NQSOs) or incentive stock options (ISOs)?  Can I receive grants in more than one year?  Will I be granted stock options and/or restricted stock automatically every year?  My company granted me stock options and restricted stock under its 2000 plan. Why wasn't my grant under a plan of the current year?  What is a "stock split"?  What is "dilution"?  How does a stock split affect my stock option grants?  Do I pay any taxes when stock options are granted to me?  Do you have a chart that compares the tax treatment of stock options, restricted stock, RSUs, and ESPPs?  Must an employer grant stock options or restricted stock to all employees?  Are there any limitations on my company's discretion in granting stock options and/or restricted stock?  Are stock options or restricted stock ever granted to part-time and hourly employees?  What is a "prospectus"?  Can the exercise price of outstanding stock options ever be raised or lowered? Can the options be repriced?  How are the dates of stock grants set, and when are grants made?  Can I have the exercise price of a new stock option grant lowered or backdated? What is the controversy over backdating?  Can stock options be granted outside a formal stock plan?  Can I be granted both incentive stock options and nonqualified stock options?  Can my employer revoke a grant of stock options?  When I am still working at my company, can it rescind or cancel my outstanding stock options or restricted stock before vesting instead of firing me?  Can stock options be granted to union employees?  Are stock options ever granted to temporary employees?  I work for a "professional employer organization." Can stock options be granted to me?  After a grant of stock options, am I treated as a shareholder?  Can a grant of stock options be an insider-trading violation?  In personal bankruptcy, can stock options be attached by creditors?  What is the likelihood of receiving a new-hire or periodic stock grant? Are there survey data or common practices?  Are stock option and restricted stock grants negotiable? What terms are negotiable at hire?  How many options have been granted to others in my company?  How do I know whether I am being granted my fair share of stock options? Are grant guidelines available publicly so that I can compare my grant to others in my and different industries?  What should I do if I feel that I have been granted too few options?  How common are premium, indexed, and performance-based stock options?  What are common criteria for receiving stock options outside the US?  Why is dilution important to me? How do stock grants affect it?  How common are noncompete provisions in stock grants? What activities can trigger a noncompete provision?  Why do companies do reverse stock splits, and how do they affect stock options?  What is a "reload" or "restoration" option? How common are they in stock plans?  Are all reload options alike?  What approaches do companies apply to underwater stock options?      Basics: Vesting Stock Option Fundamentals (Part 2): Vesting And Expiration  Stock Option Terms: What You Can Expect  What is a vesting schedule?  Why is vesting important to me?  What is a typical vesting schedule? Do you have any data on vesting schedules and their design?  How are vesting schedules established?  Are there different types of time-based vesting schedules? Which are most common?  Must all employees have the same vesting schedule?  May I ask for a shorter vesting schedule?  Do technology companies use special vesting schedules?  How much are my vested options worth?  If I remain with the company for the duration of the vesting schedule, is there any way I can lose the benefit of my option?  My restricted stock will vest soon. What must I do and decide?  Does the law mandate any minimum vesting schedule?  I have various stock option grants with vested options. Do I need to exercise first my oldest grants or my oldest vested options?  What service counts toward vesting?  Does service with a previous employer ever count toward vesting?  How does the vesting of stock options for consultants and contractors differ from the vesting of grants to employees?  Once my in-the-money options vest, are they mine forever?  When I am still working at my company, can it rescind or cancel my outstanding stock options or restricted stock before vesting instead of firing me?  Can my company fire me just before the vesting of my stock options or restricted stock/RSUs?  Does vesting continue while I am on a leave of absence or a sabbatical?  How does a call to active military duty affect stock grants?  Does the reason for my leave of absence or sabbatical affect vesting?  Does maternity leave stop my vesting?  How do unpaid vacations and shutdowns affect vesting schedules?  What happens to vesting if I am transferred to a subsidiary?  What happens to vesting if I leave to work for a joint venture?  After I retire, will my company let my stock options or restricted stock continue to vest, or will it accelerate the vesting?  Is the original vesting schedule ever accelerated by reaching performance milestones or special goals?  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?  Can my stock option grant be designed to vest only when certain performance targets are reached?  What is an example of a performance goal that triggers or accelerates vesting?  What portion of unvested options is normally accelerated in a change of control?  Can I negotiate faster vesting later while I am working for the company?  Can the terms of my severance accelerate vesting or give me a longer period to exercise my options?  Would my death automatically accelerate the vesting of my stock grants?  What happens to the vesting of my grant if I switch from full-time to part-time work?  I am leaving my job. Is my company required to tell me how many vested options I have, how long I can exercise them after I leave, or when they expire?  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?  According to surveys, how are unvested stock options most commonly treated upon various types of termination?  What happens if I terminate my employment before an option grant is fully vested?  Does the reason for my termination affect vesting?  Can I use my vested employee stock options as collateral for selling call options on my company stock?  When does my holding period for capital gains begin? At exercise or vesting?  When does my holding period for the special tax rate on dividends begin? At exercise or vesting?      Basics: Exercise Stock Option Fundamentals (Part 6): Exercise Methods  Stock Option Terms: What You Can Expect  Psychological Factors Affect Your Stock Option Exercise Decisions  How is my stock grant's exercise price set?  How is fair market value (FMV) determined for setting my exercise price? What are common company practices?  Other than paying the exercise price, what else must I do to exercise an option?  Do I need to sell my shares at exercise?  If my options are vested and have not expired or been forfeited, can my company prevent me from exercising them?  Is my employer required by law to give me choices in how I exercise my options? What are the most common methods?  Are there any limitations on when I can exercise my options?  What price is used for the market price to calculate the spread at exercise in a public company? How will I know what it is?  May I exercise unvested options?  Am I entitled to voting rights or any stock dividends paid to shareholders before I exercise?  Is there a minimum number of stock options that I must exercise at each exercise?  How many times may I exercise options in a given year?  If my stock options are scheduled to expire on a holiday or a weekend, is the last possible exercise date before or after then?  I have various stock option grants with vested options. Do I need to exercise first my oldest grants or my oldest vested options?  What happens if I terminate my employment before an option grant is fully vested?  I am an hourly employee. Does my gain from the exercise of options count in computing overtime?  Can my employer later add methods of exercise not provided for in the original grant?  What methods may be used to exercise an option?  What forms of exercise notice will my company accept?  Will my employer physically deliver shares to me upon exercise of an option?  What are the expenses, commissions, and fees involved with exercising stock options?  How do I exercise an option for cash?  What is a "cashless exercise"?  What is the procedure for a cashless exercise/same-day sale?  How soon after an NQSO exercise must the withholding taxes be paid to the IRS? Is the timing different for a cashless exercise?  Does the Sarbanes-Oxley Act outlaw cashless exercises by senior executives and directors?  What is a "sell-to-cover" exercise?  How do I use stock that I own to exercise an option in a stock swap? What is the tax treatment?  Can I use ISO stock to exercise NQSOs? Is this a disqualifying disposition that eliminates the special tax treatment for ISOs?  Must I physically deliver the certificates of the swapped shares to my employer?  If I use shares in my possession to exercise an option, must I follow special procedures?  Can I use ESPP shares in a stock-swap exercise of my options?  Can I use restricted stock in a stock swap to exercise my options?  In a stock swap, why does my employer require me to use shares that I have owned for six months or more to exercise an option?  What is a "net options" exercise?  How can I use a promissory note to exercise an option?  What are the customary terms of a promissory note used to exercise an option?  What is a "transfer agent"?  Is there a brokerage commission if I just exercise and hold my shares?  What are the different types of sell orders I can place with my option exercise?  What are margin loans? Can company stock be used as collateral?  How can I use a margin loan to exercise my options? Does it defer the taxes?  What are the risks of borrowing money from my company to exercise a stock option, to purchase restricted stock, or to pay the taxes at vesting?  When and how is the income at exercise taxed?  Can I rescind a stock option exercise and reverse the tax impact?  For NQSOs or SARs exercised on the last business day of 2012, or for restricted stock that vests on that day, is the income taxable in 2012 or 2013?  UPDATED! 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?  When does my holding period for capital gains begin? At exercise or vesting?  When does my holding period for the special tax rate on dividends begin? At exercise or vesting?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  Do I always get a Form 1099-B for a same-day-sale cashless exercise? Are there exceptions, and if so how do I report the sale on my tax return?  I have underwater stock options that are about to expire unexercised. Can I write these off as some type of loss on my tax return?  If I borrow money to exercise my options, can I deduct the interest payments against dividend income from my company stock?  My company accelerated the vesting of its outstanding stock options for "accounting reasons" and imposed restrictions on sale. Do I pay extra tax because of the acceleration, or less because I cannot sell the shares when I want?  If I sold my stock immediately upon exercise or at vesting, the transaction would violate the insider-trading laws and the laws of short-swing profits under Section 16(b) because I had a purchase within six months of the sale. Would this then delay the date of the tax treatment?  UPDATED! Do blackout or lockdown periods exist for stock plans? Are there periods during which you can't exercise options or buy stock in an ESPP?  How do blackout periods affect stock option exercises and the tax treatment?  Is the date for determining taxes delayed if the stock I receive is not registered with the SEC and I cannot immediately sell it?  Can the exercise of stock options be an insider-trading violation?  How much time do I have for exercising vested stock options after my employment ends?  If I leave my company to retire, will I have a longer period to exercise my vested options than I would if I left to take another job?  What are common periods that stock plans allow for exercising stock options upon death?  Can I exercise my options before they are vested and make a timely Section 83(b) election to be taxed on the spread at that point?      Basics: Sales Stock Option Fundamentals (Part 3): Income Taxes And Withholding  How To Report Sales Of Company Stock On Your Tax Return UPDATED! What are the big changes with reporting stock sales on my tax return? Why have these changes occurred?  UPDATED! How has IRS Form 1099-B changed for sales of stock acquired from my stock options, restricted stock, or ESPP?  UPDATED! What if the wrong cost basis is reported on my 1099-B? How do I report the right cost basis on Form 8949 of my tax return?  Do I need to sell my shares at exercise?  Do I need to sell my shares at the vesting of restricted stock, RSUs, or performance shares?  How do I sell shares that I acquired through a stock option exercise, restricted stock vesting, or ESPP?  Why does my company appoint several brokerage firms or transfer agents for me to use when I exercise my options, or for the deposit of my restricted stock and ESPP stock?  Must I use a company-approved broker to sell shares?  How will my broker know which shares to sell? Should I identify them in some way?  What are the different types of sell orders I can place with my option exercise?  Why did the brokerage firm that my company requires me to use for option exercises hold the sales proceeds and stock in my account and not send me a check?  Who pays the brokerage sales commission?  Form 8949 and Sch. D diagrams! Is the brokerage commission taxed?  How is capital gain calculated?  What happens if I have a capital gain from one sale of company stock and a capital loss from another sale of company stock or another security?  When do I receive the sales proceeds, and how will I know the amount?  If my company or a third party buys my employee stock options for cash, how is this taxed?  What is a wash sale?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  Do I always get a Form 1099-B for a same-day-sale cashless exercise? Are there exceptions, and if so how do I report the sale on my tax return?  UPDATED! 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?  What are "blackout periods" and "window periods"?  How do blackout periods affect my ability to sell shares?  Can I sell my company stock through a blind trust, or another type of trust, as a defense against insider trading?  Can proceeds from stock options be garnished to pay a creditor, an ex-spouse, or a tax authority?      Basics: Valuation & Expensing Stock Option Valuation And Your Exercise Strategy  What Are My Stock Options Worth?  Options And The Deferred Tax Bite How To "Excel" At Options Valuation Valuing Employee Stock Options: A Binomial Approach Using Microsoft Excel Forget Black-Scholes? How Employees Value (Often Incorrectly) Their Stock Options UPDATED! How have stock-market volatility and the economic downturn changed corporate stock grant practices?  UPDATED! What are the main models for stock option valuation, and how do they differ?  What does it mean when someone says that employee stock options have both face (or intrinsic) value and time value?  UPDATED! When did stock option expensing become mandatory? How does this affect and change my stock grants?  My company accelerated the vesting of its outstanding stock options for "accounting reasons" and imposed restrictions on sale. Do I pay extra tax because of the acceleration, or less because I cannot sell the shares when I want?  UPDATED! What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?  UPDATED! When did ESPP expensing become mandatory, and how may my ESPP change?  UPDATED! Do surveys show how employee stock purchase plans are changing with mandatory expensing and other developments?  How much are my options worth at grant?  How much will my options be worth in the future?  How much are my vested options worth?  What is the difference between variable and fixed stock option grant guidelines?  How do I calculate the value of my restricted stock?  UPDATED! Does my company take an earnings charge on its income statement for my restricted stock grant?  How do I value options and stock in a private company?  How are stock options valued when I give my spouse money or other property instead of transferring the options?  In a divorce case, how do you argue that underwater stock options have value?  UPDATED! How would my stock options be taxed and valued for estate tax purposes upon my death?      Basics: Alternatives Restricted Stock Versus Stock Options: Making A Rational Choice (Part 1)  Restricted Stock Versus Stock Options: Making A Rational Choice (Part 2)  What You Need To Know About Stock Appreciation Rights (SARs): Part 1  Restricted Stock Fundamentals: What You Need To Know (Part 1)  Disappearing Perk: Employee Stock Options Abundant Options In Alternative Compensation Pay Daze Can some types of companies not offer stock options or other forms of equity compensation to their employees?  What types of equity compensation other than stock options are offered by employers?  What is restricted stock? Does it differ from restricted securities?  What advantages does restricted stock give me over stock options?  What is the difference between restricted stock and performance shares or units?  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?  Which do companies grant more often: restricted stock or restricted stock units (RSUs)?  What are stock appreciation rights?  How do stock appreciation rights (SARs) differ from stock options, restricted stock, and RSUs?  Does all the stock option content on this website also apply to stock appreciation rights (SARs)?  What is a "phantom stock plan"?  What is an "employee stock ownership plan"?  How do stock options, ESPPs, and restricted stock differ from the company stock fund or contribution offered under my 401(k) plan?  How does a stock option offered to an employee differ from a stock warrant acquired by an investor?  Can my employer give me a choice of stock options, restricted stock, or cash?  UPDATED! When did stock option expensing become mandatory? How does this affect and change my stock grants?  UPDATED! What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?  What is an employee stock purchase plan?  Are there different kinds of employee stock purchase plans?  How does an ESPP differ from a stock option plan?  As a director, can I elect to take part of my retainer as "deferred stock units"?  UPDATED! What are "discounted" stock options, and how are they taxed?      Basics: Underwater Options Stomach Volatility In Your Company's Stock Without Losing Your Mind  Stockbrokers' Secrets (Part 4): What I Tell My Best Clients About Strategy For Volatile Markets  Better Late Than Never: Stock Option Strategy For The Market Upturn  Fundamentals Of Employee Stock Purchase Plans (Part 4): Down Markets And Other Tax Topics  Manage Your Expectations To Avoid The Option Blues  No Lifeline For Underwater Options When Your Stock Options Are Underwater Businesses Breathe Life Into Options What are "underwater" stock options? Why shouldn't I exercise them?  UPDATED! How have stock-market volatility and the economic downturn changed corporate stock grant practices?  I have underwater options. Will I get a tax loss when I exercise them?  I have underwater stock options that are about to expire unexercised. Can I write these off as some type of loss on my tax return?  What is an options exchange?  What approaches do companies apply to underwater stock options?  What factors should I consider in accepting an option exchange, and what is the process?  What is the tax impact on me if my company modifies outstanding stock options or SARs, such as by extending the option term?  What impact can a stock option exchange have on employees who are tax residents outside the US?  If my company offers me options in exchange for underwater options, or reprices them, will there be any tax impact on me?  My company will let me exchange my underwater options for restricted stock. What is the tax impact?  I have both in-the-money and underwater options. If I exercise them all and immediately sell the stock, can I offset the gains with the losses on the underwater options?  Can my ESPP go underwater or be affected in other ways by a down market?  Can restricted stock and performance shares go underwater?  Can the exercise price of outstanding stock options ever be raised or lowered? Can the options be repriced?  If my company or a third party buys my employee stock options for cash, how is this taxed?  In an acquisition, what happens to my underwater stock options?  If my company cancels my underwater stock options, will they still count against the $100,000 ISO limit?  What tax treatment applies if I exercise vested pre-IPO options that now cost more to exercise than they are worth?  In a divorce case, how do you argue that underwater stock options have value?  At death, the value of options is included in the gross estate for estate tax purposes. But what happens if the stock's value drops below the exercise price and the options expire unexercised?  How many employees at Microsoft elected to exchange their underwater options for cash?  NQSOs     NQSOs: Basics Stock Option Fundamentals (Part 3): Income Taxes And Withholding  What is a "nonqualified stock option"?  When are nonqualified stock options taxed?  How do I determine the amount of income I get from the exercise of a nonqualified stock option?  Will my employer report to the IRS any income from an NQSO exercise?  Is the spread at exercise of a nonqualified stock option subject to federal income-tax withholding?      NQSOs: Taxes Stock Option Fundamentals (Part 4): NQSO Taxation  Taxable And Nontaxable Income: IRS Publication 525 How is the spread at exercise of an NQSO taxed for federal income-tax purposes?  For NQSOs or SARs exercised on the last business day of 2012, or for restricted stock that vests on that day, is the income taxable in 2012 or 2013?  When I hold NQSO shares after exercise, what tax applies when I later sell the stock?  UPDATED! What are capital gains and capital losses? What are the capital gains tax rates?  UPDATED! Is the spread at exercise of a nonqualified stock option subject to Social Security taxes?  Is the exercise spread of NQSOs subject to federal unemployment taxes?  Is the spread at exercise of a nonqualified stock option subject to state and local taxes?  Can I deduct the state tax that was withheld from my NQSO exercise?  What federal tax rates ultimately apply to the exercise of a nonqualified stock option?  UPDATED! What are the federal tax-withholding rates on stock compensation? Is the rate different for amounts above $1 million?  When does my holding period for capital gains begin? At exercise or vesting?  How is capital gain calculated?  Form 8949 and Sch. D diagrams! How are capital gains taxed when I sell my NQSO shares?  How does my employer calculate the amount of withholding due at the exercise of a nonqualified stock option?  How do I pay any required tax-withholding when I exercise an NQSO?  How soon after an NQSO exercise must the withholding taxes be paid to the IRS? Is the timing different for a cashless exercise?  Will the amount of tax withheld at NQSO exercise cover the amount of tax that I am required to pay when I file my return?  When does my holding period for the special tax rate on dividends begin? At exercise or vesting?  I'm no longer an employee, so why is there withholding on my NQSO or SARs exercise?  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?  Are the tax rules, withholding, and tax return reporting for NQSOs different if I am an independent contractor, consultant, or outside director and not an employee?      NQSOs: Taxes Advanced How To Report Sales Of Company Stock On Your Tax Return Avoid Tax Return Mistakes With Stock Options & ESPPs: What You Need To Know  VIDEO! New Tax Return Forms & Reporting Rules For Stock Sales The Revised Form 1099-B & New Form 8949 For Reporting Stock Sales On Your Tax Return: How To Avoid Paying Too Much Tax  Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)  Tax Strategies With Stock Options & Deferred Compensation  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 1): Nonqualified Stock Options  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 1)  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 2)  Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs  What are some year-end strategies for restricted stock and stock options?  IRS And Treasury Warn Against Frivolous Tax Arguments Surrounding Stock Options May I have my employer withhold more taxes upon my exercise of an NQSO than the minimum required amount?  What is backup withholding? How do I prevent it or recover it?  NEW! How does a non-US resident reclaim US backup withholding? Any example?  After I exercise NQSOs, will I need to make estimated tax payments?  How is fair market value determined for W-2 reporting of NQSO taxable income at exercise and for tax withholding?  UPDATED! My new company withheld Social Security tax from my wages even though I "maxed out" on these taxes this year from my stock option exercise and restricted stock vesting at my prior employer. Can I get a refund or a credit on my tax return?  Are the tax rules, withholding, and tax return reporting for NQSOs different if I am an independent contractor, consultant, or outside director and not an employee?  W-2 diagram! What will my W-2 show after I exercise nonqualified stock options?  UPDATED! What if the wrong cost basis is reported on my 1099-B? How do I report the right cost basis on Form 8949 of my tax return?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  UPDATED! What are the big changes with reporting stock sales on my tax return? Why have these changes occurred?  UPDATED! How has IRS Form 1099-B changed for sales of stock acquired from my stock options, restricted stock, or ESPP?  NEW! In the cost basis I use to report sales of company stock on my tax return, what part comprises the W-2 income from stock compensation or an ESPP?  How do I report the income that results from the exercise of a nonqualified stock option on my federal income-tax return?  UPDATED FOR 2013! What are the biggest mistakes related to stock options I can make on my tax return, and how can I avoid them?  Form 8949 and Sch. D diagrams! How do I report a sale of NQSO shares on my federal income-tax return?  Form 8949 and Sch. D diagrams! How do I report a sale of shares in an NQSO sell-to-cover exercise?  Form 8949 and Sch. D diagrams! I did a cashless exercise with my nonqualified stock options last year. Since I have no additional gains or losses from the sale, do I still need to report the transaction on Form 8949 and Schedule D of my tax return?  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 respond?  I acquired stock from option exercises and restricted stock vesting a few years ago. When I sell the stock, how do I rediscover the cost basis for my tax return?  Form 8949 and Sch. D diagrams! I exercised NQSOs, held the stock, and now have long-term capital gains on the sale. Do I get any "credit" on my tax return for the income tax I paid for the spread at exercise?  In what ways can I pay my taxes if I don't have the money to pay them with my tax return?  UPDATED! 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?  My company's stock is now essentially worthless because of securities fraud by senior executives. Can I claim a casualty or theft loss on my tax return?  What happens if I sell the shares for less than the fair market value on the date of exercise of the NQSO?  The spread on my NQSO exercise is reported on my W-2 as ordinary income. Can I use my stock-trading losses to offset this income?  UPDATED! Are there any stock option or restricted stock strategies for using capital-loss carry-forwards?  What happens if I have a capital gain from one sale of company stock and a capital loss from another sale of company stock or another security?  Do I receive any tax benefits if a capital loss is generated by my sale of NQSO shares?  I have both in-the-money and underwater options. If I exercise them all and immediately sell the stock, can I offset the gains with the losses on the underwater options?  Do I have a tax loss if my NQSOs expire without being exercised?  Both dividends and long-term capital gains are now taxed at the same rate. Can I net my dividends from my company stock against capital loss from the sale of company stock or another security?  How will my broker know which shares to sell? Should I identify them in some way?  Are there financial-planning strategies for NQSOs?  When I take an international assignment, will taxes on my stock compensation be equalized?  My company's stock price has dropped since I exercised my NQSOs. Is there anything I can do to reduce the taxes I owed on the spread at the time of exercise?  Can the IRS seize stock options or restricted stock under a tax lien?  My company backdated more stock options than just those of the senior executives. How does this affect employees like me and the taxation of my stock grants?  If I move to another country to work, will I still have to pay US taxes on option exercises, restricted stock vesting, and stock sales? Can I avoid double taxation?  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?  What is the tax impact on me if my company modifies outstanding stock options or SARs, such as by extending the option term?  Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?  How do I use stock that I own to exercise an option in a stock swap? What is the tax treatment?  What tax treatment applies after ISOs are converted to NQSOs?  With NQSOs, is there any tax risk after exercise if the market price of my stock substantially rises or drops by the time I pay my taxes?  If I sold my stock immediately upon exercise or at vesting, the transaction would violate the insider-trading laws and the laws of short-swing profits under Section 16(b) because I had a purchase within six months of the sale. Would this then delay the date of the tax treatment?  If I exercise my NQSO and immediately donate the shares to charity, do I still need to pay the taxes on the spread at exercise?  UPDATED! What are "discounted" stock options, and how are they taxed?  Does the accelerated vesting of my stock options, restricted stock, and/or performance shares in a change of control or termination have any tax impact on me, such as for ISOs and golden parachute payments?  Is it possible to defer the gains on an NQSO exercise by having the shares delivered in a later tax year?  Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?  ISOs     ISOs: Basics What is an "incentive stock option"?  Will I receive information statements from my company about ESPP purchases or option exercises? Will I receive Form 3922 or Form 3921?  Why don't all companies grant ISOs? What are the disadvantages to companies?  What are the holding period requirements of an ISO?  What is a disqualifying disposition, what can cause it, and why does my company care?  Why does my employer require me to give notice of a sale of ISO or ESPP stock?  Is the gifting or donation of stock that I acquired from an ISO exercise or ESPP purchase a disqualifying disposition? What is the tax treatment for early sale?  I receive yearly option grants from my company. If I exercise all the options in one year's grant and sell just part of the ISO stock, is it a disqualifying disposition for all the ISO shares in that grant?  How are ISOs usually handled in divorce?  Is transferring ISO stock into a joint account with my spouse a disqualifying disposition if the stock has not met the holding-period requirements?  In a divorce agreement, I am transferring to my former spouse ISO stock that has not met the holding period requirement. Is this a disqualifying disposition?      ISOs: Limits Final ISO Regulations Affect Stock Plan Design, Optionholders, And Advisors (Part 1)  Final ISO Regulations Affect Stock Plan Design, Optionholders, And Advisors (Part 2)  Treasury And IRS Regulations For Incentive Stock Options Early-Exercise ISOs Complicated By Final IRS Regulations  Proposed Regulations For ISOs Is there a limit to the number or value of ISOs that I may be granted?  Can ISOs be granted at an exercise price below fair market value?  When I am no longer with my company (e.g. because of job loss, disability, or death), will tax-law limits or deadlines dictate when I must exercise an ISO?  Can independent contractors, consultants, or outside directors be granted ISOs?  How is the $100,000 limit on ISOs calculated?  Can the annual limit of $100,000 in exercisable ISOs be adversely affected by any post-grant events, such as job termination or the acceleration of vesting in a merger?  If my company cancels my underwater stock options, will they still count against the $100,000 ISO limit?  What other limitations apply to ISOs?  Can an ISO be divided in a divorce?  Can ISOs be transferred to a grantor trust?  Do special rules determine when a leave of absence is a termination of employment for the purposes of ISOs?  Are the disability rules the same for ISOs?      ISOs: Taxes IRS Form 3921 For Incentive Stock Options: What You Need To Know, And How It Can Help You Understand ISO Taxation  Stock Option Fundamentals (Part 3): Income Taxes And Withholding  Stock Option Fundamentals (Part 5): Incentive Stock Option Taxation & Alternative Minimum Tax  Treasury And IRS Regulations For Incentive Stock Options Proposed Regulations For ISOs Taxable And Nontaxable Income: IRS Publication 525 What are the tax consequences of exercising an ISO?  W-2 diagram! What will my W-2 show after I exercise incentive stock options?  UPDATED! Has recent legislation changed the taxation of incentive stock options?  How am I taxed on my gain from a sale of stock that I acquired in an ISO exercise?  What is a disqualifying disposition, what can cause it, and why does my company care?  How am I taxed if I make a disqualifying disposition (e.g. sale) of ISO shares in the year I exercised the option?  What are the ISO withholding rules?  Did Congress or the IRS change the withholding rules that apply to ISOs and ESPPs?  What do I need to know about the information on IRS Form 3921 for incentive stock options?  What tax treatment applies after ISOs are converted to NQSOs?  I hear that when I sell my ISO stock at exercise or within one year I'm taxed as if I had NQSOs. Does this mean that on the spread at exercise (or when I sell the stock) there is withholding and Social Security and Medicare tax?  If I plan to sell my ISO stock before the end of the required holding periods (i.e. a disqualifying disposition), is there any tax advantage to receiving ISOs instead of NQSOs?  My company allows me to exercise my ISOs more than 90 days after I leave my job. What is the tax treatment at exercise?  UPDATED! What are capital gains and capital losses? What are the capital gains tax rates?  When does my holding period for capital gains begin? At exercise or vesting?  What happens if I have a capital gain from one sale of company stock and a capital loss from another sale of company stock or another security?      ISOs: Taxes Advanced How To Report Sales Of Company Stock On Your Tax Return Avoid Tax Return Mistakes With Stock Options & ESPPs: What You Need To Know  The Revised Form 1099-B & New Form 8949 For Reporting Stock Sales On Your Tax Return: How To Avoid Paying Too Much Tax  VIDEO! New Tax Return Forms & Reporting Rules For Stock Sales ISOs: Tax Return Tips And Traps  ISOs And Wash Sales: A Trap Within A Trap  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 1)  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 2)  Hedging Your ISO Stock  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 3): Incentive Stock Options  Final ISO Regulations Affect Stock Plan Design, Optionholders, And Advisors (Part 1)  Final ISO Regulations Affect Stock Plan Design, Optionholders, And Advisors (Part 2)  Early-Exercise ISOs Complicated By Final IRS Regulations  Stockbrokers' Secrets (Part 7): Year-End Planning For ISOs  Now Is The Time To Exercise ISOs UPDATED FOR 2013! What are the biggest mistakes related to stock options I can make on my tax return, and how can I avoid them?  Form 8949 and Sch. D diagrams! After I have met the ISO holding periods, how do I report a sale on my tax return?  Form 8949 and Sch. D diagrams! I did a cashless exercise with my incentive stock options. Should I still report it on Form 8949 and Schedule D even though the gain is zero? And what about the alternative minimum tax?  Form 8949 and Sch. D diagrams! How do I report a sale of shares in an ISO sell-to-cover exercise?  Form 8949 and Sch. D diagrams! How am I taxed if I have made a disqualifying disposition (e.g. sale) of ISO shares in a different year than the year I exercised the option? How do I report this?  Form 8949 and Sch. D diagrams! I exercised my ISOs and sold the ISO stock later in the same year. How is this reported on my tax return when the stock price at sale was higher or lower than at exercise?  Form 8949 and Sch. D diagrams! When I sell my ISO shares in a disqualifying disposition, will the broker's commission reduce the amount of ordinary income on my W-2 or the amount of gross sales proceeds on my Form 8949 and Schedule D?  UPDATED! What are the big changes with reporting stock sales on my tax return? Why have these changes occurred?  UPDATED! How has IRS Form 1099-B changed for sales of stock acquired from my stock options, restricted stock, or ESPP?  NEW! In the cost basis I use to report sales of company stock on my tax return, what part comprises the W-2 income from stock compensation or an ESPP?  UPDATED! What if the wrong cost basis is reported on my 1099-B? How do I report the right cost basis on Form 8949 of my tax return?  How will my broker know which shares to sell? Should I identify them in some way?  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 do I use stock that I own to exercise an option in a stock swap? What is the tax treatment?  Can I use ISO stock to exercise NQSOs? Is this a disqualifying disposition that eliminates the special tax treatment for ISOs?  When I take an international assignment, will taxes on my stock compensation be equalized?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  The amount of my spread at exercise was not listed on the W-2 that I received from my company, even though I made a disqualifying disposition. Do I report this gain on my tax return, and how will I be taxed?  I acquired stock from option exercises and restricted stock vesting a few years ago. When I sell the stock, how do I rediscover the cost basis for my tax return?  In what ways can I pay my taxes if I don't have the money to pay them with my tax return?  Can the IRS seize stock options or restricted stock under a tax lien?  Even though no withholding is required for ISOs, can I still pay the federal and state taxes when I make a cashless exercise?  What is the tax impact on me if my company modifies outstanding stock options or SARs, such as by extending the option term?  Is the gifting or donation of stock that I acquired from an ISO exercise or ESPP purchase a disqualifying disposition? What is the tax treatment for early sale?  Both dividends and long-term capital gains are now taxed at the same rate. Can I net my dividends from my company stock against capital loss from the sale of company stock or another security?  The spread on my cashless ISO exercise is reported on my W-2 as ordinary income. Can I use my stock-trading losses to offset this income?  Is all the income that results from a disqualifying disposition of ISO shares a short-term capital gain that I can net against my capital losses on my tax return?  My company backdated more stock options than just those of the senior executives. How does this affect employees like me and the taxation of my stock grants?  If I sold my stock immediately upon exercise or at vesting, the transaction would violate the insider-trading laws and the laws of short-swing profits under Section 16(b) because I had a purchase within six months of the sale. Would this then delay the date of the tax treatment?  Is writing call options on, or buying put options for, my ISO stock a disqualifying disposition?  If I move to another country to work, will I still have to pay US taxes on option exercises, restricted stock vesting, and stock sales? Can I avoid double taxation?  What is the tax treatment of ISOs after death?  I exercised ISOs and am hoping to wait 12 months before selling to get the favorable ISO tax treatment. What happens in a cash M&A deal when I'm trying for the one-year holding-period mark but the buyer pays cash for the stock? Is there any way around incurring a disqualifying disposition?  Does the accelerated vesting of my stock options, restricted stock, and/or performance shares in a change of control or termination have any tax impact on me, such as for ISOs and golden parachute payments?  Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?  Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?  What are some year-end strategies for restricted stock and stock options?  My company's stock is now essentially worthless because of securities fraud by senior executives. Can I claim a casualty or theft loss on my tax return?      ISOs: AMT IRS Form 3921 For Incentive Stock Options: What You Need To Know, And How It Can Help You Understand ISO Taxation  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  IRS Instructions For Form 6251: Alternative Minimum Tax Avoid These Tax Blunders What is the alternative minimum tax?  UPDATED! What is the latest news from Congress about legislation relating to the alternative minimum tax?  Is it easy to calculate AMT liability?  UPDATED! In general, how does the alternative minimum tax (AMT) calculation work?  UPDATED FOR 2013! Are there guidelines for calculating AMT trigger points? For example, if my spouse and I earn $100,000, will we trigger the AMT when I exercise ISOs?  Do I eliminate AMT by selling in the year of exercise or within a year of exercise?  How do incentive stock options affect my liability for paying alternative minimum tax?  UPDATED! Do I get a tax credit if I paid AMT when I exercised an ISO? How does it work?  I have a large unused AMT credit. Is there now a refundable AMT credit to help me use it faster?  I held ISO stock on which I paid AMT in a prior year. Do I still need to determine my AMT even if I do not sell the stock?      ISOs: AMT Advanced Avoid Tax Return Mistakes With Stock Options & ESPPs: What You Need To Know  ISOs: Tax Return Tips And Traps  Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)  The Alternative Minimum Tax Sweet Spot: Planning Opportunities  The ISO Tax Trap And The AMT Credit Myth: What To Do Before Exercise And At Year-End  The Refundable AMT Credit: How It Works & What You Need To Know  Refundable AMT Credit: Different Rules For Old Unused Credit  Refundable AMT Credit: The Calculation  Early-Exercise ISOs Complicated By Final IRS Regulations  ISOs And Wash Sales: A Trap Within A Trap  Stockbrokers' Secrets (Part 7): Year-End Planning For ISOs  Tax Timing IRS And Treasury Warn Against Frivolous Tax Arguments Surrounding Stock Options UPDATED! What ISO strategies can help minimize AMT liability?  I know that my ISO exercises will trigger the AMT for me this year or next. Are there planning strategies related to other tax payments and income?  At year-end, is there any general way to determine how many ISOs I can exercise and hold before triggering AMT?  I have paid AMT, so do I get an adjustment when I sell the ISO shares to get all the taxes back?  Are there any AMT strategies when I also have NQSOs?  I have a large unused AMT credit. Is there now a refundable AMT credit to help me use it faster?  Earlier in the year, I exercised ISOs, held the stock, and had a big spread from the market price that will trigger AMT. But my company's stock price has dropped below my exercise price. Can I eliminate AMT and even claim a tax loss?  I exercised ISOs early last year. The stock price has dropped, and I want to sell my shares before the one-year anniversary of the exercise date. Is this considered a disqualifying disposition that would cause the spread at exercise not to be a preference item for AMT?  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?  After I have paid AMT for my ISO exercise and hold, what are some mistakes that I must avoid on my tax return?  What should I do if I forgot to report the ISO exercise/hold on my tax return but now realize I may owe AMT?  What is the tax basis of my ISO stock that I use to calculate the sale gain for AMT purposes?  Are qualified dividends included in the AMT calculation?  When I hold ISO stock, how far must the stock price drop from the market price at exercise for AMT to exceed what my ordinary income tax would be if I sold the shares this year?  My company's stock price has dropped substantially since I acquired shares from my stock grants, leaving me with a ruinous tax bill much larger than my gains. Is there anything I can do to reduce or eliminate the ordinary income or AMT that I owe?  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?  What is a wash sale?  How does the wash sale rule apply if I sell ISO stock to avoid AMT and then quickly repurchase the stock at current market prices?  UPDATED FOR 2013! What are the biggest mistakes related to stock options I can make on my tax return, and how can I avoid them?  If I gift or donate stock from an incentive stock option exercise/hold that triggered AMT, do I get an adjustment for it on my AMT return? What happens to my AMT credit?  What would happen to my AMT credit at death, or to an AMT credit created by my estate?  ESPPs     ESPPs: Basics Six ESPP Essentials (Part 1): Enrollment, Plan Type, Purchase Timing  Key Dates And Terms You Must Know For Your Company's ESPP  Are You Taking Full Advantage Of Your Company's Employee Stock Purchase Plan?  Fundamentals Of Employee Stock Purchase Plans (Part 1): Basic Structure And Terms  Fundamentals Of Employee Stock Purchase Plans (Part 2): Design Limitations And Enrollment Procedures  Employee Stock Purchase Plans: Qualified And Nonqualified Plans What is an employee stock purchase plan?  How does an ESPP differ from a stock option plan?  What are the most common eligibility requirements for ESPPs?  Why do companies offer employee stock purchase plans?  Are there different kinds of employee stock purchase plans?  How does a Section 423 ESPP work?  Why is a Section 423 ESPP a good deal?  How does an ESPP work if it is not a qualified plan under Internal Revenue Code Section 423?  UPDATED! When did ESPP expensing become mandatory, and how may my ESPP change?  How many employees generally participate in ESPPs?  UPDATED! Do surveys show how employee stock purchase plans are changing with mandatory expensing and other developments?  How can I find out whether my company has an employee stock purchase plan, what type it is, and what its basic features are?  What documents should I read before deciding to participate in my company's ESPP? What is my company required to show me?  What is the eligible compensation that can be used for calculating the money that is available for the stock purchase?  How is the fair market value of company common stock determined for calculating the discounted purchase price?  Under my company's ESPP, do I pay commissions on the purchase of stock or on the sale of that stock?  What happens to my payroll deductions? What happens if more money has accumulated in my ESPP account than can be used to buy shares?  What happens to the purchased shares, and when will I receive my stock certificates?  When can I sell my ESPP shares?  How do I sell shares that I acquired through a stock option exercise, restricted stock vesting, or ESPP?  Why does my employer require me to give notice of a sale of ISO or ESPP stock?  If I leave the company, what happens to the money that has been deducted from my paycheck to purchase ESPP shares?  How will a stock split affect my ESPP and the shares I purchased just before the split?  How does the split affect brokerage accounts of ESPP participants?  How does the split affect the ESPP enrollment price that will be established just prior to the split?  What happens to my ESPP when my company is acquired?  In an acquisition, what happens to money that has been waiting to purchase shares in my ESPP?      ESPPs: Rules Key Dates And Terms You Must Know For Your Company's ESPP  Fundamentals Of Employee Stock Purchase Plans (Part 2): Design Limitations And Enrollment Procedures  Employee Stock Purchase Plans & Your Financial Planning (Part 1)  Employee Stock Purchase Plans: Qualified And Nonqualified Plans How much will I pay when I buy stock in the employee stock purchase plan?  Will the price always be discounted from the fair market value of the stock? What do surveys show about corporate practices?  Can my ESPP go underwater or be affected in other ways by a down market?  Who is eligible to participate in an ESPP? Can anybody, such as part-time workers or employees outside the US, be excluded from participation?  Is there a minimum age for participation in my company's ESPP?  What is the maximum earnings amount or percentage that I can have withheld to purchase shares under the plan? What is the minimum?  How do I join or enroll in an employee stock purchase plan?  How long will my enrollment continue to be effective?  What is an "offering date" or "enrollment date"?  What is a "grant date" in an ESPP?  What is an "offering period" or "enrollment period"?  What is the longest the offering period can be?  What is a "purchase period"?  What is the exercise or purchase date?  When are my shares purchased?  What is a "lookback"?  If I elect to participate in the plan, can I withdraw at any time?  If I withdraw from the plan, how soon can I resume participation?  Under my ESPP, can I assign or transfer my rights to another person?  Can I stop deductions for a few pay periods and then start again?  Can I reduce or increase the percentage of my payroll deductions?  Can I roll unused ESPP funds into the next offering?  Can I begin my participation after an offering period has begun?  How do you calculate the $25,000 annual purchase limit and the maximum number of shares you can buy?  How does the $25,000 calculation work when the offering period spans more than one year?  Once I begin participation, how can I check the status of my account?  Can I contribute additional amounts if I want to buy additional shares of stock?  Are there any restrictions on how much stock I can sell at once?      ESPPs: Advanced Six ESPP Essentials (Part 2): Holding Periods, Tax Treatment, Major Corporate Or Personal Events  ESPP Choices: Flip Or Hold? (Part 1)  ESPP Choices: Flip Or Hold? (Part 2)  Employee Stock Purchase Plans & Your Financial Planning (Part 1)  Employee Stock Purchase Plans & Your Financial Planning (Part 2)  Year-End Strategies For Employee Stock Purchase Plans: Ideas To Consider  Will I receive information statements from my company about ESPP purchases or option exercises? Will I receive Form 3922 or Form 3921?  Can my ESPP go underwater or be affected in other ways by a down market?  UPDATED! When did ESPP expensing become mandatory, and how may my ESPP change?  UPDATED! Do surveys show how employee stock purchase plans are changing with mandatory expensing and other developments?  My company's 12-month offering period contains two six-month purchase periods. If I enroll after the start, at the beginning of the second purchase period, what is my lookback offering price?  In a down market, why does my ESPP automatically withdraw and re-enroll me in a new offering period?  How will my broker know which shares to sell? Should I identify them in some way?  How does the company know I've sold my shares?  How common is it for an ESPP to have a mandatory holding period for purchased stock?  Can I name a beneficiary for my stock options, ESPPs, stock appreciation rights, or restricted stock?  If I die, what will happen to my ESPP participation and the holding period rules?  Does participating in an ESPP affect my ability to contribute to a 401(k) plan or IRA?  Can my company use the IPO price as the ESPP grant date price?  Can a purchase of shares through an ESPP ever be considered insider trading?  Are there any securities-law restrictions on my sale of ESPP stock?  UPDATED! Do blackout or lockdown periods exist for stock plans? Are there periods during which you can't exercise options or buy stock in an ESPP?  Can a senior executive or board member participate in an ESPP?  I am an officer in my company and want to participate in our ESPP. Do Section 16 reporting and liability for short-swing profits raise any special concerns with an ESPP?      ESPPs: Taxes IRS Form 3922 For ESPPs: What You Need To Know, And How It Can Help You Understand ESPP Taxation  Avoid Tax Return Mistakes With Stock Options & ESPPs: What You Need To Know  ESPP Taxation Made Simple  Six ESPP Essentials (Part 2): Holding Periods, Tax Treatment, Major Corporate Or Personal Events  Fundamentals Of Employee Stock Purchase Plans (Part 3): Tax Treatment Of Your Purchases And Sales  ESPP Choices: Flip Or Hold? (Part 1)  What are the eventual tax consequences of participating in a tax-qualified employee stock purchase plan (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?  My ESPP has no discount apart from my company's elimination of any fees, such as the broker's commission. Is this taxable?  What do I need to know about the information on IRS Form 3922 for ESPPs?  How long must I hold shares purchased under a Section 423 ESPP to receive favorable tax treatment?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  What is an ESPP disqualifying disposition, what can cause it, and why does my company care?  Do I have to pay tax when stock is purchased for me under the plan?  Are taxes withheld when shares are bought under a tax-qualified employee stock purchase plan? Do FICA taxes apply?  Will my company withhold taxes at the sale of stock that I purchased under my employee stock purchase plan?  Did Congress or the IRS change the withholding rules that apply to ISOs and ESPPs?  What is backup withholding? How do I prevent it or recover it?  NEW! How does a non-US resident reclaim US backup withholding? Any example?  Does the alternative minimum tax (AMT) apply to the ESPP discount spread?  Are pre- or post-tax dollars used to purchase the stock in the ESPP? Is the salary used to purchase stock still included in my income?  Is transferring ESPP stock into a joint account with my spouse a disqualifying disposition if the stock has not met the holding-period requirements?  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?  Do the holding-period requirements apply to my ESPP stock after I leave the company?  Can I use ESPP shares in a stock-swap exercise of my options?      ESPPs: Taxes Advanced IRS Form 3922 For ESPPs: What You Need To Know, And How It Can Help You Understand ESPP Taxation  Avoid Tax Return Mistakes With Stock Options & ESPPs: What You Need To Know  How To Report Sales Of Company Stock On Your Tax Return The Revised Form 1099-B & New Form 8949 For Reporting Stock Sales On Your Tax Return: How To Avoid Paying Too Much Tax  VIDEO! New Tax Return Forms & Reporting Rules For Stock Sales Fundamentals Of Employee Stock Purchase Plans (Part 4): Down Markets And Other Tax Topics  ESPP Choices: Flip Or Hold? (Part 2)  Employee Stock Purchase Plans & Your Financial Planning (Part 1)  Year-End Strategies For Employee Stock Purchase Plans: Ideas To Consider  UPDATED FOR 2013! What are the biggest mistakes related to my employee stock purchase plan that I can make on my tax return, and how can I avoid them?  Form 8949 and Sch. D diagrams! If I sell ESPP shares after the required holding periods, how do I report the sale on my Form 8949 and Schedule D?  Form 8949 and Sch. D diagrams! If I make a disqualifying disposition with my ESPP stock, how do I report the sale on Form 8949 and Schedule D of my tax return?  Form 8949 and Sch. D diagrams! My company's ESPP is not tax-qualified under Section 423 of the Internal Revenue Code. How do I report any gain that results from the sale of my ESPP shares on my federal income-tax return?  UPDATED! How has IRS Form 1099-B changed for sales of stock acquired from my stock options, restricted stock, or ESPP?  UPDATED! What are the big changes with reporting stock sales on my tax return? Why have these changes occurred?  NEW! In the cost basis I use to report sales of company stock on my tax return, what part comprises the W-2 income from stock compensation or an ESPP?  UPDATED! What if the wrong cost basis is reported on my 1099-B? How do I report the right cost basis on Form 8949 of my tax return?  W-2 diagram! If I sell ESPP shares after the required holding periods, what will appear on my W-2?  W-2 diagram! If I make a disqualifying disposition with my ESPP stock, what will appear on my W-2?  W-2 diagram! My company's employee stock purchase plan is not tax-qualified under Section 423 of the Internal Revenue Code. What will my W-2 show after an ESPP purchase?  How will I be taxed when I sell the stock if I meet the holding-period requirements under Section 423 for tax-qualified ESPPs?  If I do not meet the ESPP holding-period requirements to receive favorable tax treatment, how will I be taxed when I sell the stock?  Can my ESPP go underwater or be affected in other ways by a down market?  Can I ever have ordinary income but no actual gain on sales of ESPP stock?  If my company eliminates the lookback for my ESPP, will the tax treatment change?  What, if anything, shows up on my W-2 when I purchase discounted shares of stock under an ESPP?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  My company has a basic ESPP without a discount but also without commissions on purchase. Is the unpaid commission considered taxable compensation?  I bought stock in my company's ESPP and am hoping to wait 12 months before selling to get the favorable ESPP tax treatment. What happens in a cash M&A deal when I am trying to reach the one-year holding-period mark but the buyer pays cash for the stock before then? Is there any way around a disqualifying disposition?  Is the gifting or donation of stock that I acquired from an ISO exercise or ESPP purchase a disqualifying disposition? What is the tax treatment for early sale?  If I gift stock that has met the holding periods for Section 423 ESPPs, what is the tax treatment?  NEW! If I donate stock that has met the holding periods for Section 423 ESPPs, what is the tax treatment?  What is a wash sale?  What is the tax treatment of ESPP shares at death?  Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?  My company's stock is now essentially worthless because of securities fraud by senior executives. Can I claim a casualty or theft loss on my tax return?  Restricted Stock     Restricted Stock: Basics Restricted Stock 101: Five Essentials Of Restricted Stock & RSUs  Why You'll Learn To Like Restricted Stock Grants  Restricted Stock Fundamentals: What You Need To Know (Part 1)  Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts  Restricted Stock & RSUs  What is restricted stock? Does it differ from restricted securities?  Why do many companies grant restricted stock and RSUs instead of stock options?  What advantages does restricted stock give me over stock options?  Does this website's content on restricted stock also apply to restricted stock units (RSUs)?  Which do companies grant more often: restricted stock or restricted stock units (RSUs)?  My restricted stock will vest soon. What must I do and decide?  Do I need to sell my shares at the vesting of restricted stock, RSUs, or performance shares?  Can restricted stock and performance shares go underwater?  What is the process of granting equity awards?  Are stock option and restricted stock grants negotiable? What terms are negotiable at hire?  What guidelines do employers use to determine how many stock options or restricted shares to grant?  My company granted me stock options and restricted stock under its 2000 plan. Why wasn't my grant under a plan of the current year?  What does a stock grant agreement look like, and what terms does it cover? Where can I find samples?  Does a grant of restricted stock or performance shares have an expiration date, as stock options do?  Do I need to buy the restricted stock from my company or exercise something to get it?  How do I calculate the value of my restricted stock?  How does a stock split affect my restricted stock grant?  Do I receive dividends on unvested restricted stock and have voting rights?  Can I reinvest my restricted stock dividends in more company stock instead of taking cash income now?  Do I get to hold the stock itself with a restricted stock grant?  What is a vesting schedule?  Are there different types of time-based vesting schedules? Which are most common?  What is a typical vesting schedule? Do you have any data on vesting schedules and their design?  What service counts toward vesting?  Do I forfeit my restricted stock if I leave the company before vesting?  Can my company fire me just before the vesting of my stock options or restricted stock/RSUs?  My stock will be "released" or "delivered" at vesting. What does that mean?  What is a lapse election, and why do I need to make it before the restricted stock or restricted stock units vest?  Once my restricted stock vests, is it mine forever?  How do I sell shares that I acquired through a stock option exercise, restricted stock vesting, or ESPP?      Restricted Stock: Advanced Restricted Stock: Tax, Financial, Estate, And Retirement Planning (Part 1)  Stockbrokers' Secrets (Part 8): What I Tell My Clients About Their Restricted Stock And Performance Shares  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 2): Restricted Stock  Restricted Stock: Tax, Financial, Estate, And Retirement Planning (Part 2)  Restricted Stock Versus Stock Options: Making A Rational Choice (Part 1)  Restricted Stock Versus Stock Options: Making A Rational Choice (Part 2)  Decisions At Vesting With Restricted Stock (Part 2): Hold Or Fold?  Restricted Stock & RSUs: Education & Communications  Restricted Stock, Performance Shares, And Trends In Equity Compensation: What Financial Advisors Need To Know  Year-End Strategies For Restricted Stock: Ideas To Consider  Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs  My restricted stock will vest soon. What must I do and decide?  Can you calculate whether it is better to be granted stock options or restricted stock?  Why do companies grant fewer restricted stock shares (or units) than stock options? Are there any trends in the ratios of shares for options?  UPDATED! What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?  UPDATED! Does my company take an earnings charge on its income statement for my restricted stock grant?  What is the difference between variable and fixed restricted stock grant guidelines?  What is the difference between restricted stock and performance shares or units?  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?  UPDATED! How common are stock options, restricted stock, performance shares, and ESPPs outside the US? Do surveys show trends?  Can stock compensation affect my other employee benefits, such as 401(k) contributions?  Any data on vesting schedules for restricted stock?  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?  What happens to my stock grants if I become temporarily disabled?  After I retire, will my company let my stock options or restricted stock continue to vest, or will it accelerate the vesting?  Is the original vesting schedule ever accelerated by reaching performance milestones or special goals?  What is an example of a performance goal that triggers or accelerates vesting?  What could happen to my restricted stock in an acquisition of my company?  How do "change of control" and trigger provisions in stock plans generally work to accelerate vesting?  If my company is bought for stock of the acquirer, will I be able to purchase the same number of shares in the buyer as I am allowed to with my current options and restricted stock?  Can I transfer or pledge restricted stock before vesting?  When I am still working at my company, can it rescind or cancel my outstanding stock options or restricted stock before vesting instead of firing me?  Do restricted stock grants have noncompete provisions?  Can options or restricted stock be granted to my IRA instead of to me?  Can my company require me to retain a certain amount of company stock from a stock option exercise or a restricted stock grant?  UPDATED! 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?  UPDATED! How does a dividend affect the value of stock options, restricted stock, and restricted stock units?  Does receiving dividend payments on my restricted stock before it vests mean I automatically get the stock even if I leave the company before vesting?  Can I use restricted stock in a stock swap to exercise my options?  If my restricted stock vests during a blackout period or when I know secret stock-price-moving information, can I be charged with insider trading?  I am a senior executive. When and how do I make my Form 4 filing for restricted stock, restricted stock units, and performance shares?  I am a senior executive and plan to sell enough restricted stock at vesting to cover the taxes I will owe. Is this sale still subject to the short-swing profit rules under Section 16?  UPDATED! When did stock option expensing become mandatory? How does this affect and change my stock grants?      Restricted Stock: Restricted Stock Units Restricted Stock Units Made Simple (Part 1): Understanding The Core Concepts  Restricted Stock Units Made Simple (Part 2): Taxation  Restricted Stock 101: Five Essentials Of Restricted Stock & RSUs  Stockbrokers' Secrets (Part 8): What I Tell My Clients About Their Restricted Stock And Performance Shares  What is the difference between restricted stock and restricted stock units (RSUs)?  Does this website's content on restricted stock also apply to restricted stock units (RSUs)?  What is the difference between restricted stock and performance shares or units?  When and how is a grant of restricted stock or RSUs taxed?  Why do many companies grant restricted stock and RSUs instead of stock options?  Which do companies grant more often: restricted stock or restricted stock units (RSUs)?  Why would my company grant me restricted stock units (RSUs) instead of restricted stock?  With restricted stock units and performance shares, can I defer the delivery of the shares at vesting? How is this taxed?  My stock will be "released" or "delivered" at vesting. What does that mean?  W-2 diagram! What will my W-2 show after the vesting of restricted stock units?  Form 8949 and Sch. D diagrams! When my restricted stock units vested, my company automatically withheld shares to cover the taxes. Do I need to report these shares on my Form 8949 and Schedule D?  Form 8949 and Sch. D diagrams! How do I report a sale of shares from restricted stock units (RSUs) on my federal income-tax return?  How does the taxation of restricted stock and restricted stock units differ?  What is a lapse election, and why do I need to make it before the restricted stock or restricted stock units vest?  I am eligible for vesting acceleration at retirement but have not actually retired, so why has my restricted stock been taxed?  Do I get dividends with restricted stock units (RSUs)? How are they taxed?  When does my capital gains holding period begin for grants of restricted stock and restricted stock units (RSUs)?  Can I make a Section 83(b) election for a grant of restricted stock units (RSUs)?  Can my company convert restricted stock into restricted stock units?  As a director, can I elect to take part of my retainer as "deferred stock units"?  I am a senior executive. When and how do I make my Form 4 filing for restricted stock, restricted stock units, and performance shares?  Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?      Restricted Stock: Performance Shares Performance Shares: The Basics (Part 1)  Performance Shares: Grant Structure, Expiration, And Job Events (Part 2)  Performance Shares: Taxation And M&A (Part 3)  Stockbrokers' Secrets (Part 8): What I Tell My Clients About Their Restricted Stock And Performance Shares  Performance Shares: Taxes & Communications  Pay Daze What is the difference between restricted stock and performance shares or units?  W-2 diagram! What will my W-2 show after the vesting of performance shares?  Form 8949 and Sch. D diagrams! How do I report a sale of performance shares on my federal income-tax return?  How soon after the end of the performance period do I receive the shares?  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?  Is the original vesting schedule ever accelerated by reaching performance milestones or special goals?  Does a grant of restricted stock or performance shares have an expiration date, as stock options do?  How is my performance share grant taxed, and how are taxes withheld?  Do I get dividends with performance share awards? How are they taxed?  With restricted stock units and performance shares, can I defer the delivery of the shares at vesting? How is this taxed?  What happens to my performance shares in an acquisition of my company?  What would happen to my performance share grant if I were to lose my job, retire, become disabled, or die?  UPDATED! What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?  UPDATED! How common are stock options, restricted stock, performance shares, and ESPPs outside the US? Do surveys show trends?  How common are premium, indexed, and performance-based stock options?  Can restricted stock and performance shares go underwater?  Can my stock option grant be designed to vest only when certain performance targets are reached?  I am a senior executive. When and how do I make my Form 4 filing for restricted stock, restricted stock units, and performance shares?  Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?  Does the accelerated vesting of my stock options, restricted stock, and/or performance shares in a change of control or termination have any tax impact on me, such as for ISOs and golden parachute payments?      Restricted Stock: Taxes Decisions At Grant With Restricted Stock (Part 1): Tax Fundamentals  Restricted Stock Taxation: What You Need To Know (Part 2)  Restricted Stock Units Made Simple (Part 2): Taxation  Decisions At Vesting With Restricted Stock (Part 1): Withholding  Stock Options Versus Restricted Shares: A Case Of Risk Versus Reward W-2 diagram! What will my W-2 show after the vesting of restricted stock?  W-2 diagram! What will my W-2 show after the vesting of restricted stock units?  When and how is a grant of restricted stock or RSUs taxed?  UPDATED! How and when are taxes withheld from my restricted stock?  UPDATED! What are the federal tax-withholding rates on stock compensation? Is the rate different for amounts above $1 million?  When my restricted stock vests, how does my company choose the stock price for calculating my W-2 reporting and my share withholding?  How does my employer determine the amount of withholding due at the vesting of my restricted stock grant?  What is backup withholding? How do I prevent it or recover it?  NEW! How does a non-US resident reclaim US backup withholding? Any example?  Are the tax rules, withholding, and tax return reporting for restricted stock different if I am an independent contractor, a consultant, or an outside director and not an employee?  UPDATED! What is a "substantial risk of forfeiture" and how does it affect the taxation of restricted stock?  Can I control when I will be taxed on a restricted stock grant?  Is the value of my restricted stock at vesting subject to state and local taxes? What if I move?  How are the dividends on restricted stock taxed and reported to me?  When does my capital gains holding period begin for grants of restricted stock and restricted stock units (RSUs)?  My company will let me exchange my underwater options for restricted stock. What is the tax impact?  Is my spouse entitled to part of my stock options and other stock grants upon our divorce?  How is restricted stock handled in divorce? Who pays taxes when restricted stock or vested company shares are transferred in a divorce settlement?  If I die, the vesting of my restricted stock will accelerate. How would this be taxed as part of my estate?      Restricted Stock: Taxes Advanced How To Report Sales Of Company Stock On Your Tax Return Restricted Stock & RSUs: What You Must Know To Avoid Tax Return Mistakes  VIDEO! New Tax Return Forms & Reporting Rules For Stock Sales The Revised Form 1099-B & New Form 8949 For Reporting Stock Sales On Your Tax Return: How To Avoid Paying Too Much Tax  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 2): Restricted Stock  Restricted Stock: Tax, Financial, Estate, And Retirement Planning (Part 2)  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 1)  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 2)  Decisions At Grant With Restricted Stock (Part 3): Analyze Your Alternatives  Year-End Strategies For Restricted Stock: Ideas To Consider  Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs  UPDATED FOR 2013! What are the biggest mistakes with restricted stock or RSUs that I can make on my tax return, and how can I avoid them?  Form 8949 and Sch. D diagrams! How do I report a sale of restricted stock on my federal income-tax return?  Form 8949 and Sch. D diagrams! Do I need to report on my tax return the restricted stock I sold or surrendered to my company for the tax withholding?  Form 8949 and Sch. D diagrams! When I hold restricted stock after it vests and later have capital gains on the sale, will I get any "credit" for the income tax I paid at vesting?  UPDATED! What are the big changes with reporting stock sales on my tax return? Why have these changes occurred?  UPDATED! How has IRS Form 1099-B changed for sales of stock acquired from my stock options, restricted stock, or ESPP?  NEW! In the cost basis I use to report sales of company stock on my tax return, what part comprises the W-2 income from stock compensation or an ESPP?  UPDATED! What if the wrong cost basis is reported on my 1099-B? How do I report the right cost basis on Form 8949 of my tax return?  UPDATED! 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?  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?  UPDATED! 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?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  How will my broker know which shares to sell? Should I identify them in some way?  Can the IRS seize stock options or restricted stock under a tax lien?  I received a notice (CP-2000) from the IRS stating that, according to last year's tax return, I owe money for the sale of my restricted stock when it vested. I thought I paid all the taxes through withholding at vesting. How do I respond?  In what ways can I pay my taxes if I don't have the money to pay them with my tax return?  I acquired stock from option exercises and restricted stock vesting a few years ago. When I sell the stock, how do I rediscover the cost basis for my tax return?  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)?  What is a lapse election, and why do I need to make it before the restricted stock or restricted stock units vest?  Should I set up a Rule 10b5-1 trading plan to cover the stock I will sell or surrender to pay withholding taxes when my restricted stock vests?  When I take an international assignment, will taxes on my stock compensation be equalized?  What is the tax treatment of my restricted stock in an acquisition?  Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?  Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?  UPDATED! My new company withheld Social Security tax from my wages even though I "maxed out" on these taxes this year from my stock option exercise and restricted stock vesting at my prior employer. Can I get a refund or a credit on my tax return?  How soon after my restricted stock vests must the IRS receive my withholding taxes?  May I have my employer withhold more taxes upon the vesting of my restricted stock than the minimum required amount?  The value of my restricted stock has fallen since vesting. If I sell my shares at year-end, do I get a credit for the income tax I paid at vesting, or do I net the loss against capital gains?  What happens if I live in state A when my restricted stock is granted, in state B when part of it vests, in state C when the rest of it vests, and in state D when I sell my shares?  If I move to another country to work, will I still have to pay US taxes on option exercises, restricted stock vesting, and stock sales? Can I avoid double taxation?  I'm no longer an employee, so why is there withholding on my restricted stock vesting?  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?  I have started receiving Social Security retirement payments. If I exercise stock options or my restricted stock vests, must I still pay Social Security tax on the income? Can this cause my Social Security payments to be taxed too?  Can stock option, restricted stock, or ESPP income alone qualify me to establish an IRA?  I am eligible for vesting acceleration at retirement but have not actually retired, so why has my restricted stock been taxed?  The value of my restricted stock at vesting is reported on my W-2 as ordinary income. Can I use my stock-trading losses to offset this income?  Is the vesting of my restricted stock a "wash sale"?  How are shares of company stock that I received from prior option exercises or restricted stock vesting valued for federal estate-tax purposes after my death? Is there a step-up in the basis of the stock?  If I die, the vesting of my restricted stock will accelerate. How would this be taxed as part of my estate?  At death, do tax withholding and reporting apply to restricted stock if the vesting is accelerated or allowed to continue?  What are the federal income tax consequences if my estate or beneficiary sells stock that I received from a prior option exercise or from restricted stock vesting?  Does the accelerated vesting of my stock options, restricted stock, and/or performance shares in a change of control or termination have any tax impact on me, such as for ISOs and golden parachute payments?  If my restricted stock vests during a blackout period, or if the stock sale on the vest date would trigger Section 16 short-swing profit liability, is the tax treatment delayed until a later date?  My company's stock is now essentially worthless because of securities fraud by senior executives. Can I claim a casualty or theft loss on my tax return?  What are some year-end strategies for restricted stock and stock options?      Restricted Stock: Section 83(b) Decisions At Grant With Restricted Stock (Part 2): The 83(b) Election Risks  Decisions At Grant With Restricted Stock (Part 3): Analyze Your Alternatives  Foreign Executives Transferring To The United States: Tax-Planning Strategies For Equity Compensation  UPDATED! How do I make a timely and complete Section 83(b) election?  UPDATED! Should I make a Section 83(b) election for my restricted stock grant?  Is a Section 83(b) election taxing you on the value of restricted stock at grant ever revocable? Can it be rescinded?  UPDATED! My restricted stock never vested because I left my company, but I paid taxes on the stock at the time of grant. Can I recover the taxes that I paid with the 83(b) election or claim some other deduction?  Can I make a Section 83(b) election for just part of my restricted stock grant?  Can I make a Section 83(b) election for a grant of restricted stock units (RSUs)?  Can my company help me file my Section 83(b) election?  How can I file the paper version of my 83(b) election with my online tax return?  Can my company discourage or even prohibit me from making a Section 83(b) election on my restricted stock grant?  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?  By the time my restricted stock vested the price had dropped from the market price at grant. But I elected to pay taxes on the stock value at the time of grant. Can I recover the taxes that I paid with the Section 83(b) election?  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?  SARs     SARs: Basics What You Need To Know About Stock Appreciation Rights (SARs): Part 1  What are stock appreciation rights?  Does all the stock option content on this website also apply to stock appreciation rights (SARs)?  UPDATED! What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?  Why are some companies considering stock appreciation rights (SARs) as an alternative to stock options?  Are stock appreciation rights (SARs) a better deal for me than stock options?  How do stock appreciation rights (SARs) differ from stock options, restricted stock, and RSUs?  How do I exercise stock appreciation rights?  How does a stock split affect my stock appreciation rights?  What specific provisions should I know about my SARs grant?  Am I entitled to voting rights or any stock dividends paid to shareholders before I exercise?  Are there any special securities law issues and filing requirements with stock appreciation rights (SARs) for senior executives and directors?  How does a court determine whether my soon-to-be-former spouse should receive any part of my stock grant?  What is a "phantom stock plan"?      SARs: Taxes How To Report Sales Of Company Stock On Your Tax Return VIDEO! New Tax Return Forms & Reporting Rules For Stock Sales What You Need To Know About Stock Appreciation Rights (SARs): Part 2  How are stock appreciation rights taxed?  W-2 diagram! What will my W-2 show after I exercise stock appreciation rights?  UPDATED FOR 2013! What are the biggest mistakes related to stock appreciation rights (SARs) that I can make on my tax return, and how can I avoid them?  Form 8949 and Sch. D diagrams! How do I report sales of shares from stock appreciation rights on my federal income-tax return?  UPDATED! What are the big changes with reporting stock sales on my tax return? Why have these changes occurred?  UPDATED! How has IRS Form 1099-B changed for sales of stock acquired from my stock options, restricted stock, or ESPP?  NEW! In the cost basis I use to report sales of company stock on my tax return, what part comprises the W-2 income from stock compensation or an ESPP?  When I exercise my stock appreciation rights (SARs), will the amount of tax withheld cover the amount of tax that I must pay when I file my return?  If I exercise stock appreciation rights (SARs), will I need to make estimated tax payments?  What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise, restricted stock vesting, or ESPP purchase?  I acquired stock from option exercises and restricted stock vesting a few years ago. When I sell the stock, how do I rediscover the cost basis for my tax return?  Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?  What is the tax impact on me if my company modifies outstanding stock options or SARs, such as by extending the option term?  For NQSOs or SARs exercised on the last business day of 2012, or for restricted stock that vests on that day, is the income taxable in 2012 or 2013?  I'm no longer an employee, so why is there withholding on my NQSO or SARs exercise?  UPDATED! What are the federal tax-withholding rates on stock compensation? Is the rate different for amounts above $1 million?  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?  My company's stock is now essentially worthless because of securities fraud by senior executives. Can I claim a casualty or theft loss on my tax return?  What are some year-end strategies for restricted stock and stock options?  Financial Planning     Financial Planning: Strategies Stockbrokers' Secrets (Part 4): What I Tell My Best Clients About Strategy For Volatile Markets  Restricted Stock: Tax, Financial, Estate, And Retirement Planning (Part 1)  Employee Stock Purchase Plans & Your Financial Planning (Part 2)  Stockbrokers' Secrets (Part 8): What I Tell My Clients About Their Restricted Stock And Performance Shares  Strategic Planning With Roth IRAs And Stock Compensation (Part 1)  A Holistic Approach To Managing Equity Compensation  Ten Financial-Planning Rules Everyone With Stock Options Needs To Know  Preventing Irrational Decisions About Selling Company Stock Or Exercising Options  Stockbrokers' Secrets (Part 1): What I Tell My Best Clients About Stock Option Strategy  Stockbrokers' Secrets (Part 2): What I Tell My Best Clients About Stock Option Strategy  Retirement Planning With Your Stock Options And Other Stock Compensation (Part 1: Pre-Retirement Planning)  A Financial Advisor's View Of Your Stock Plans  Getting The Most From Your Stock Options  Lessons In Sitting Pretty Options: Have An Exit Plan Taking Stock Of Options NEW! How does the health-care reform law affect my Medicare tax and stock compensation planning?  I have various stock option grants with vested options. Do I need to exercise first my oldest grants or my oldest vested options?  I have vested stock options. What should I do: exercise and hold, exercise and immediately sell, or wait to exercise?  I have more than one stock option grant, and they are at different exercise prices. Which one should I exercise first?  I have both in-the-money and underwater options. If I exercise them all and immediately sell the stock, can I offset the gains with the losses on the underwater options?  Are there financial-planning strategies for NQSOs?  My company's stock price recently fell dramatically, but I expect it to rise again soon. Are there any NQSO strategies (or mistakes to avoid) in a market upturn?  I plan to exercise options for stock that pays dividends. Are there any exercise strategies or at least mistakes to avoid?  To seek financial aid for my children's college tuition, I need to report my income and assets to the US Department of Education on the Free Application for Federal Student Aid (FAFSA). Should I list my stock grants? At what value?      Financial Planning: Advanced Strategies Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)  Stock Option Financial Planning After Your Tax Return Is Filed (Part 2)  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 2): Restricted Stock  The Alternative Minimum Tax Sweet Spot: Planning Opportunities  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 1): Nonqualified Stock Options  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 3): Incentive Stock Options  Equity Compensation Strategies For Down And Rising Markets  ESPP Choices: Flip Or Hold? (Part 2)  Reframing Your Stock Option Exercise Strategy In Volatile Markets  Strategic Planning With Roth IRAs And Stock Compensation (Part 2): A Case Study  Better Late Than Never: Stock Option Strategy For The Market Upturn  When To Wait, Hold, Or Sell: A Wealth Manager Reveals His Wisdom On Stock Option Exercise Strategy (Part 1)  When To Wait, Hold, Or Sell: A Wealth Manager Reveals His Wisdom On Stock Option Exercise Strategy (Part 2)  How To Develop A Stock Option Exercise Strategy To Reach Your Financial Goals (Part 1)  How To Develop A Stock Option Exercise Strategy To Reach Your Financial Goals (Part 2): Understand Risk Versus Return  Options For Your Options: Generating Income From Your Vested Employee Stock Options Without Exercising  Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)  Stock Option Valuation And Your Exercise Strategy  Restricted Stock: Tax, Financial, Estate, And Retirement Planning (Part 2)  Decisions At Grant With Restricted Stock (Part 3): Analyze Your Alternatives  Decisions At Vesting With Restricted Stock (Part 2): Hold Or Fold?  Restricted Stock, Performance Shares, And Trends In Equity Compensation: What Financial Advisors Need To Know  Sunk By Options UPDATED! 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?  UPDATED! Should I make a Section 83(b) election for my restricted stock grant?  How do I calculate whether my after-tax gains will be greater by investing my current option spread into a mutual fund or a diversified stock portfolio, as opposed to just waiting to exercise the options at the end of the term?  Can you calculate whether it is better to be granted stock options or restricted stock?  What are price and time targets for stock option exercises and sales of company stock?  My company pays a good dividend. Should I exercise my NQSOs and hold the stock instead of just waiting to exercise near the end of the option term?  UPDATED! Are there any stock option or restricted stock strategies for using capital-loss carry-forwards?  What is a concentrated stock position, and what can I do to protect myself and get cash for other purposes?  Is there a way to defer taxation when I sell company stock?  Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?  Are there any strategies for paying estimated taxes on income from stock options and restricted stock?  UPDATED! What ISO strategies can help minimize AMT liability?  I know that my ISO exercises will trigger the AMT for me this year or next. Are there planning strategies related to other tax payments and income?  What is a Rule 10b5-1 trading plan?      Financial Planning: Diversification Stock Option Strategy To Diversify Away Your Company Stock Risk  How To Diversify Your Company Stock Holdings While Leveraging The Wealth In Your Stock Options & Other Equity Grants  Stockbrokers' Secrets (Part 5): What I Tell My Best Clients About Company Stock Diversification  Stockbrokers' Secrets (Part 6): What I Tell My Best Clients About Retirement Planning With Stock Compensation  Tax Strategies With Stock Options & Deferred Compensation  Executive Clients: Taking Stock Of Their Portfolios Too Much Of A Good Thing Defying Diversification Employee Stock Options Planning Remains Confusing How To Value Your Stock Options The Risks And Rewards Of Company Stock Lessons Of A Bear Market What are the risks of owning my company's stock?  When should I sell my company stock?  How do I diversify my company-stock holdings?  Can my company set ownership guidelines for company stock?  Can my company require me to retain a certain amount of company stock from a stock option exercise or a restricted stock grant?  I have faith in my company's stock and want to own it, yet I also must diversify. I have both shares and in-the-money vested options. Should I sell the shares I already have or exercise options and immediately sell those shares in a cashless exercise?  How do I calculate whether my after-tax gains will be greater by investing my current option spread into a mutual fund or a diversified stock portfolio, as opposed to just waiting to exercise the options at the end of the term?  What is a concentrated stock position, and what can I do to protect myself and get cash for other purposes?  I want to set up a program with my company and broker in which I automatically exercise options and sell stock to pay a regularly expected bill as it's received, such as my child's tuition. Can this prearranged selling plan violate insider trading laws and my company's blackout rules?      Financial Planning: High Net Worth Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems (Part 2)  The Alternative Minimum Tax Sweet Spot: Planning Opportunities  Tax Strategies With Stock Options & Deferred Compensation  Foreign Executives Transferring To The United States: Tax-Planning Strategies For Equity Compensation  Hedging Your Employee Stock Options (Part 3)  Options For Your Options: Generating Income From Your Vested Employee Stock Options Without Exercising  Hedging Your Employee Stock Options (Part 1)  Hedging Your Employee Stock Options (Part 2)  Strategies For Hedging Concentrated Stock Positions (Part 1)  Strategies For Hedging Concentrated Stock Positions (Part 2)  Strategies For Hedging Concentrated Stock Positions (Part 3)  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 1)  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 2)  Converting Your Stock Option Spread Into Nonqualified Deferred Compensation  Hedging Your ISO Stock  Techniques To Defer Or Reduce Taxes On The Sale Of Your Company's Shares (Part 1): QSB Stock  Sophisticated Techniques To Defer Or Reduce Taxes On The Sale Of Your Company's Shares (Part 2): SSBICs  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 1): Nonqualified Stock Options  50 Slices Of Wealth Execs Pay It Forward—To Themselves A Hidden Bull-Market Scandal Comes To Light Defying Diversification IRS Guide To Auditing Techniques For Stock-Based Compensation IRS Nonqualified Deferred Compensation Audit Techniques Guide UPDATED! 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?  Can my company set ownership guidelines for company stock?  Can my company require me to retain a certain amount of company stock from a stock option exercise or a restricted stock grant?  NEW! Do companies make stock option or restricted stock grants to directors? Any survey data on director grants?  When I take an international assignment, will taxes on my stock compensation be equalized?  UPDATED! Has the likelihood of a tax audit increased?  What is a concentrated stock position, and what can I do to protect myself and get cash for other purposes?  What are margin loans? Can company stock be used as collateral?  What is a Rule 10b5-1 trading plan?  Can I put NQSOs or company stock into a charitable remainder trust or a grantor-retained annuity trust?  Can stock options and restricted stock be transferred or gifted to people or charities after I get them?  How does a "clawback" work to take away gains from my equity compensation?  How common are clawback provisions?  What is the tax impact if my company claws back gains from stock grants?  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?  Are my stock grants affected by the rules of deferred compensation under IRC Section 409A?  Can I use my vested employee stock options as collateral for selling call options on my company stock?  What is restricted stock? Does it differ from restricted securities?  I want to set up a program with my company and broker in which I automatically exercise options and sell stock to pay a regularly expected bill as it's received, such as my child's tuition. Can this prearranged selling plan violate insider trading laws and my company's blackout rules?  Are senior executives and directors banned from trading company stock during a 401(k) blackout period?  Can I sell my company stock through a blind trust, or another type of trust, as a defense against insider trading?  If I enter into a hedging transaction in my company stock, as a senior executive do I need to report this to the SEC on Form 4? Can I be banned from hedging?  If I hedge my company stock (for example, by selling calls on it), will the dividends get the favorable tax rate for qualified dividends?  Is writing call options on, or buying put options for, my ISO stock a disqualifying disposition?  Will my company be able to take a tax deduction for the value of my restricted stock, restricted stock units, performance shares, or stock options if my compensation already exceeds $1 million?  What is a "reload" or "restoration" option? How common are they in stock plans?  How can a reload option help me?  Is it possible to defer the gains on an NQSO exercise by having the shares delivered in a later tax year?  Can my company lend me money to buy its stock, exercise an option grant, or pay taxes on restricted stock at vesting? Can it later cancel or modify that debt?  Do federal securities laws impose any reporting requirements on a public company's officers, directors, and significant stockholders?  If I must disgorge short-swing profits under Section 16(b), do I still have to pay tax on those profits? Do I get a tax deduction for the disgorgement?  If I am no longer an officer or director of a public company, do I still need to meet the requirements of Rule 144 to sell my company stock?  Can I sell my options to a family trust or a family partnership to defer taxes? Are there other strategies to defer the gain on nonqualified stock options other than the deferred delivery of the shares?  My company's stock price has substantially dropped. As an executive, I want to buy the stock on the open market to show confidence to investors and analysts. Do I still need to worry about insider trading and liability for short-swing profits under Section 16?  As a director, can I elect to take part of my retainer as "deferred stock units"?  Does the US have an exit tax?      Financial Planning: Estate Planning The Use Of GRATs With Company Stock To Reduce Taxes: Hurry Before The Rules Change  Donating Your Company Stock To Charities And Private Foundations (Part 1)  Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 1)  Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 2)  Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 3)  Donating Your Company Stock To Charities And Private Foundations (Part 2)  Gifts: Save On Estate Taxes With Transferable Stock Options  Using The Gift-Tax Exemption Amounts  Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)  Taking Advantage Of A Down Economy Can I name a beneficiary for my stock options, ESPPs, stock appreciation rights, or restricted stock?  UPDATED! How would my stock options be taxed and valued for estate tax purposes upon my death?  How are shares of company stock that I received from prior option exercises or restricted stock vesting valued for federal estate-tax purposes after my death? Is there a step-up in the basis of the stock?  What is the tax treatment for gifts of company stock?  Can stock options and restricted stock be transferred or gifted to people or charities after I get them?  If I gift my company stock to a grantor-retained annuity trust (GRAT), do the securities laws still apply?  Can I transfer or pledge restricted stock before vesting?  Can I put NQSOs or company stock into a charitable remainder trust or a grantor-retained annuity trust?  What would happen to my AMT credit at death, or to an AMT credit created by my estate?  Can I sell my options to a family trust or a family partnership to defer taxes? Are there other strategies to defer the gain on nonqualified stock options other than the deferred delivery of the shares?  Can I sell my company stock through a blind trust, or another type of trust, as a defense against insider trading?  Can ISOs be transferred to a grantor trust?  Why would I transfer stock options to a living trust? What is the tax impact?  Does the post-death exercise period begin to run on the day after my death or only when my administrator, executor, or heir has authority to exercise the options?      Financial Planning: Gifts Donating Your Company Stock To Charities And Private Foundations (Part 1)  Donating Your Company Stock To Charities And Private Foundations (Part 2)  Gifts: Save On Estate Taxes With Transferable Stock Options  Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 1)  The Use Of GRATs With Company Stock To Reduce Taxes: Hurry Before The Rules Change  Using The Gift-Tax Exemption Amounts  What is the tax deduction for donations of my company stock?  What is the tax treatment for gifts of company stock?  Can stock options and restricted stock be transferred or gifted to people or charities after I get them?  Can I put NQSOs or company stock into a charitable remainder trust or a grantor-retained annuity trust?  Can I exercise my stock options, soon thereafter donate the shares to charity, and get a tax deduction for the stock's new higher price?  Can I donate shares and then immediately buy the same number of shares on the open market?  If I exercise my NQSO and immediately donate the shares to charity, do I still need to pay the taxes on the spread at exercise?  Is the gifting or donation of stock that I acquired from an ISO exercise or ESPP purchase a disqualifying disposition? What is the tax treatment for early sale?  If I gift stock that has met the holding periods for Section 423 ESPPs, what is the tax treatment?  NEW! If I donate stock that has met the holding periods for Section 423 ESPPs, what is the tax treatment?  If I gift or donate stock from an incentive stock option exercise/hold that triggered AMT, do I get an adjustment for it on my AMT return? What happens to my AMT credit?  Do Rule 144, Section 16, and the insider-trading rules apply to gifts and donations of company stock by senior executives or directors?      Financial Planning: Dividends How Dividends Impact Your Strategy For Stock Options And Restricted Stock (Part 1)  How Dividends Impact Your Strategy For Stock Options And Restricted Stock (Part 2)  When To Wait, Hold, Or Sell: A Wealth Manager Reveals His Wisdom On Stock Option Exercise Strategy (Part 1)  IRS Publication 550: Investment Income And Expenses UPDATED! How does a dividend affect the value of stock options, restricted stock, and restricted stock units?  Do I receive dividends on unvested restricted stock and have voting rights?  How are the dividends on restricted stock taxed and reported to me?  Do I get dividends with restricted stock units (RSUs)? How are they taxed?  Do I get dividends with performance share awards? How are they taxed?  Am I entitled to voting rights or any stock dividends paid to shareholders before I exercise?  I plan to exercise options for stock that pays dividends. Are there any exercise strategies or at least mistakes to avoid?  Can I reinvest my restricted stock dividends in more company stock instead of taking cash income now?  Does receiving dividend payments on my restricted stock before it vests mean I automatically get the stock even if I leave the company before vesting?  When does my holding period for the special tax rate on dividends begin? At exercise or vesting?  Are qualified dividends included in the AMT calculation?  My company pays a good dividend. Should I exercise my NQSOs and hold the stock instead of just waiting to exercise near the end of the option term?  Both dividends and long-term capital gains are now taxed at the same rate. Can I net my dividends from my company stock against capital loss from the sale of company stock or another security?  If I hedge my company stock (for example, by selling calls on it), will the dividends get the favorable tax rate for qualified dividends?  If my brokerage firm lends my dividend-paying company shares while I have a margin loan, will the dividends get the favorable tax rate for qualified dividends?  If I borrow money to exercise my options, can I deduct the interest payments against dividend income from my company stock?      Financial Planning: Year-End Planning Top Ideas For Year-End Tax Planning With Stock Compensation  Year-End Strategies For Restricted Stock: Ideas To Consider  Year-End Strategies For Employee Stock Purchase Plans: Ideas To Consider  In Their Own Words: Financial Advisors On Strategies For Stock Compensation And Company Stock Holdings At Year-End  Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs  Stockbrokers' Secrets (Part 7): Year-End Planning For ISOs  Stock Option Financial Planning After Your Tax Return Is Filed And At Year-End (Part 1)  How Tax Rate Changes Impact Your Stock Grant Strategies (Part 1): Nonqualified Stock Options  The ISO Tax Trap And The AMT Credit Myth: What To Do Before Exercise And At Year-End  Year-End Tax & Financial-Planning Issues For Employees  Now Is The Time To Exercise ISOs Your Year-End Personal-Finance Checklist What are some year-end strategies for restricted stock and stock options?  With the potential for tax-rate increases in 2013, I am thinking about exercising my nonqualified stock options to accelerate income into 2012. What issues do I need to think about?  I am thinking about selling some company stock this year, as next year my income will trigger the 3.8% Medicare surtax on investment income, along with higher tax rates on capital gains and dividends. After selling the stock this year, I would then repurchase it to reset the basis. What are the issues I need to consider?  For NQSOs or SARs exercised on the last business day of 2012, or for restricted stock that vests on that day, is the income taxable in 2012 or 2013?  At year-end, is there any general way to determine how many ISOs I can exercise and hold before triggering AMT?  How do stock grants affect Roth IRA contributions and conversions?  UPDATED! Are there any stock option or restricted stock strategies for using capital-loss carry-forwards?  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)?  The value of my restricted stock has fallen since vesting. If I sell my shares at year-end, do I get a credit for the income tax I paid at vesting, or do I net the loss against capital gains?  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)?  Are there any strategies for paying estimated taxes on income from stock options and restricted stock?  UPDATED! What ISO strategies can help minimize AMT liability?  I know that my ISO exercises will trigger the AMT for me this year or next. Are there planning strategies related to other tax payments and income?  When I hold ISO stock, how far must the stock price drop from the market price at exercise for AMT to exceed what my ordinary income tax would be if I sold the shares this year?  Earlier in the year, I exercised ISOs, held the stock, and had a big spread from the market price that will trigger AMT. But my company's stock price has dropped below my exercise price. Can I eliminate AMT and even claim a tax loss?  Can I rescind a stock option exercise and reverse the tax impact?  Is a Section 83(b) election taxing you on the value of restricted stock at grant ever revocable? Can it be rescinded?  Job Events     Job Events: Job Search & Negotiation Negotiating And Structuring Your Stock Compensation (Part 1): Key Documents  Negotiating And Structuring Your Stock Compensation (Part 2): Privately Held Companies  Negotiating And Structuring Your Stock Compensation (Part 3): Equity Rights And Severance When You Terminate Employment  Strategies For Negotiating A Compensation Package In Down Markets  Stock Option Terms: What You Can Expect  Understanding The Risks In Your Pre-IPO Stock Options (Part 1)  How Does Your Company's Stock Plan Compare? (Part 1)  How Does Your Company's Stock Plan Compare? (Part 2)  Your Stock Grants May Come With Strings Attached  Flexing Your Muscle 50 Slices Of Wealth Picture Improves For Private-Company Pay Working For A Piece Of The Action Workers Give Up Get-Rich Dreams, Still Value Stock Options What is the likelihood of receiving a new-hire or periodic stock grant? Are there survey data or common practices?  UPDATED! How have stock-market volatility and the economic downturn changed corporate stock grant practices?  Are stock option and restricted stock grants negotiable? What terms are negotiable at hire?  Does service with a previous employer ever count toward vesting?  Do employers ever issue additional options or restricted stock to replace grants that were forfeited at a previous employer?  Can I negotiate faster vesting later while I am working for the company?  Can I protect myself from dilution and liquidity preferences in my pre-IPO company?      Job Events: Hiring Strategies For Negotiating A Compensation Package In Down Markets  Negotiating And Structuring Your Stock Compensation (Part 1): Key Documents  Negotiating And Structuring Your Stock Compensation (Part 2): Privately Held Companies  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 1)  Taking An Overseas Assignment: Stock Compensation For Mobile Employees (Part 2)  Your Stock Grants May Come With Strings Attached  What Are My Stock Options Worth?  Stock Grant Sizes In Pre-IPO Tech Companies  Stocking Up On Motivation Picture Improves For Private-Company Pay Why Stock Options Still Rule UPDATED! How have stock-market volatility and the economic downturn changed corporate stock grant practices?  How does a "clawback" work to take away gains from my equity compensation?  How common are clawback provisions?  What is the tax impact if my company claws back gains from stock grants?  When I take an international assignment, will taxes on my stock compensation be equalized?  Is it better to be granted nonqualified stock options (NQSOs) or incentive stock options (ISOs)?  How are the dates of stock grants set, and when are grants made?  What guidelines do employers use to determine how many stock options or restricted shares to grant?  Can I have the exercise price of a new stock option grant lowered or backdated? What is the controversy over backdating?  How much are my options worth at grant?  How do I know whether I am being granted my fair share of stock options? Are grant guidelines available publicly so that I can compare my grant to others in my and different industries?  What should I do if I feel that I have been granted too few options?  Do employers ever issue additional options or restricted stock to replace grants that were forfeited at a previous employer?  Can my employer give me a choice of stock options, restricted stock, or cash?  What does it mean when someone says that employee stock options have both face (or intrinsic) value and time value?  Does service with a previous employer ever count toward vesting?  Can the terms of my severance accelerate vesting or give me a longer period to exercise my options?  How common are noncompete provisions in stock grants? What activities can trigger a noncompete provision?      Job Events: Termination Job Loss And Your Stock Grants (Part 1): Options, Restricted Stock, And ESPPs  Job Loss And Your Stock Grants (Part 2): Changes Of Employment Status, Post-Termination Tax, Severance  Negotiating And Structuring Your Stock Compensation (Part 3): Equity Rights And Severance When You Terminate Employment  Stock Option Terms: What You Can Expect  If You're Laid Off, Be Sure To Know Your Stock Options What happens if I terminate my employment before an option grant is fully vested?  Do I forfeit my restricted stock if I leave the company before vesting?  If I leave the company, what happens to the money that has been deducted from my paycheck to purchase ESPP shares?  I am leaving my job. Is my company required to tell me how many vested options I have, how long I can exercise them after I leave, or when they expire?  I am planning to leave my job. Do stock options stop vesting when I give notice or on the actual date of termination?  My company recently went through layoffs. What rights do involuntarily terminated employees have in their stock options, and what may my company do?  Can my company fire me just before the vesting of my stock options or restricted stock/RSUs?  I'm no longer an employee, so why is there withholding on my NQSO or SARs exercise?  I'm no longer an employee, so why is there withholding on my restricted stock vesting?  Can the terms of my severance accelerate vesting or give me a longer period to exercise my options?  How much time do I have for exercising vested stock options after my employment ends?  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?  What are the most common periods after termination during which stock options can be exercised? Does the reason (e.g. disability, early retirement) matter?  If my employment agreement gives me longer after termination to exercise my stock options than the stock plan and grant agreement do, which controls?  What is the tax impact on me if my company modifies outstanding stock options or SARs, such as by extending the option term?  My company is selling the division where I work. I will no longer work for that company but will keep the same job under the new corporate owner. What will happen to options and restricted stock in the divestiture?  Does the reason for my termination affect vesting?  According to surveys, how are unvested stock options most commonly treated upon various types of termination?  Is there any risk of violating the insider trading or Section 16 rules after I leave the company by exercising options or selling company stock?  Does the severance-pay period extend the clock for post-termination exercise?  When I am still working at my company, can it rescind or cancel my outstanding stock options or restricted stock before vesting instead of firing me?  Does receiving dividend payments on my restricted stock before it vests mean I automatically get the stock even if I leave the company before vesting?  If I remain with the company for the duration of the vesting schedule, is there any way I can lose the benefit of my option?  When I am no longer with my company (e.g. because of job loss, disability, or death), will tax-law limits or deadlines dictate when I must exercise an ISO?  Do special rules determine when a leave of absence is a termination of employment for the purposes of ISOs?  My company allows me to exercise my ISOs more than 90 days after I leave my job. What is the tax treatment at exercise?  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?      Job Events: Consultants & Contractors Negotiating And Structuring Your Stock Compensation (Part 2): Privately Held Companies  Can consultants or independent contractors be granted stock options or company stock? How common is this practice?  What happens to my stock options if I switch from employee to consultant status?  Are there any rules of thumb for how many options or shares of stock that consultants should receive on a project?  Are the tax rules, withholding, and tax return reporting for NQSOs different if I am an independent contractor, consultant, or outside director and not an employee?  Are the tax rules, withholding, and tax return reporting for restricted stock different if I am an independent contractor, a consultant, or an outside director and not an employee?  Can independent contractors, consultants, or outside directors be granted ISOs?  Do the terms in option grant agreements to consultants differ from the terms in employee grant agreements?  What are the special issues with options and restricted stock granted to consultants that I need to consider in negotiating my agreement with the company?  Are consultant stock options subject to vesting schedules?  How does the vesting of stock options for consultants and contractors differ from the vesting of grants to employees?  How do I know whether I am still "consulting" or "rendering services" for purposes of vesting and exercisability of options?  When my consulting project ends, what should I do to ensure that I get my options or stock? How do I prevent losing my options?  I just heard that the company I did consulting work for is about to go public or be acquired. What should I do about my options or stock?  Do securities laws and regulations place restrictions on stock options or shares granted to consultants and on their freedom to sell the stock?  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?  Can a consultant use the proceeds from an NQSO exercise or restricted stock vesting to fund a Keogh or SEP?  Do advisory-board members usually receive stock options? Does this bear disadvantages for companies?  I am a consultant. If I have stock options in a pre-IPO company, do I have the right to receive financial statements or shareholder reports?  Can a private company contractually restrict my ability to resell my shares, or do the securities laws limit my ability to resell them?  Is the date for determining taxes delayed if the stock I receive is not registered with the SEC and I cannot immediately sell it?  Life Events     Life Events: Retirement Retirement Planning With Your Stock Options And Other Stock Compensation (Part 1: Pre-Retirement Planning)  Stockbrokers' Secrets (Part 6): What I Tell My Best Clients About Retirement Planning With Stock Compensation  Retirement Planning With Your Stock Options And Other Stock Compensation (Part 2: Retirement Year)  Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)  A Holistic Approach To Managing Equity Compensation  Switching From Offense To Defense Careful: Don't Blow Your Options The Stock Option Dream After I retire, will my company let my stock options or restricted stock continue to vest, or will it accelerate the vesting?  Do stock plans treat early retirement differently from ordinary retirement?  I am eligible for vesting acceleration at retirement but have not actually retired, so why has my restricted stock been taxed?  What are the most common periods after termination during which stock options can be exercised? Does the reason (e.g. disability, early retirement) matter?  If I leave my company to retire, will I have a longer period to exercise my vested options than I would if I left to take another job?  My post-retirement exercise period is longer than the remaining term of my stock options. Which term applies after I retire?  If I no longer work for my company because I retire, become a consultant, or leave to work for another company, will the procedure for exercising my options change?  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?  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?  Does my stock option exercise or restricted stock vesting affect the annual earnings limit of Social Security and reduce my benefits?  When should I start taking Social Security benefits? What role can stock compensation play in my decision?  I have started receiving Social Security retirement payments. If I exercise stock options or my restricted stock vests, must I still pay Social Security tax on the income? Can this cause my Social Security payments to be taxed too?  What would happen to my performance share grant if I were to lose my job, retire, become disabled, or die?      Life Events: Retirement Plans Strategic Planning With Roth IRAs And Stock Compensation (Part 1)  Strategic Planning With Roth IRAs And Stock Compensation (Part 2): A Case Study  Retirement Planning With Your Stock Options And Other Stock Compensation (Part 3: Post-Retirement Planning)  ESPP Choices: Flip Or Hold? (Part 2)  Stockbrokers' Secrets (Part 6): What I Tell My Best Clients About Retirement Planning With Stock Compensation  How do stock grants affect Roth IRA contributions and conversions?  Are stock options, restricted stock, and ESPPs subject to ERISA requirements and regulations?  How do stock options, ESPPs, and restricted stock differ from the company stock fund or contribution offered under my 401(k) plan?  Can stock compensation affect my other employee benefits, such as 401(k) contributions?  Can I use company stock or cash in my 401(k) plan to exercise my stock options?  Can I use cash in my IRA account to exercise my options?  Can options or restricted stock be granted to my IRA instead of to me?  Can I sell my company stock to my IRA for cash or contribute my company stock to it?  Can stock option, restricted stock, or ESPP income alone qualify me to establish an IRA?  Does income from stock options affect my payments under disability policies or pension plans?  What is an "employee stock ownership plan"?  Does participating in an ESPP affect my ability to contribute to a 401(k) plan or IRA?  Can a consultant use the proceeds from an NQSO exercise or restricted stock vesting to fund a Keogh or SEP?  Can I commit insider trading by buying or selling company stock in my 401(k) when I know important, confidential information?  Are senior executives and directors banned from trading company stock during a 401(k) blackout period?      Life Events: College Funding Funding Your Child's College Education With Stock Options And Other Stock Grants (Part 1)  Funding Your Child's College Education With Stock Options And Other Stock Grants (Part 2)  Funding Your Child's College Education With Stock Options And Other Stock Grants (Part 3)  The New Kiddie Tax Tuition Magicians Twenty Questions About Paying for College To seek financial aid for my children's college tuition, I need to report my income and assets to the US Department of Education on the Free Application for Federal Student Aid (FAFSA). Should I list my stock grants? At what value?  What is the tax treatment for gifts of company stock?  I want to set up a program with my company and broker in which I automatically exercise options and sell stock to pay a regularly expected bill as it's received, such as my child's tuition. Can this prearranged selling plan violate insider trading laws and my company's blackout rules?      Life Events: Divorce I'm Getting Divorced: What Happens To My Stock Options? (Part 1)  I'm Getting Divorced: What Happens To My Stock Options? (Part 2)  I'm Getting Divorced: What Happens To My Stock Options? (Part 3)  Divorce, Taxation, And Stock Options Can Make Strange Bedfellows  Nonqualified Deferred Compensation In Divorce  Splitting Stock Options In A Divorce Protecting Your Interests During Divorce Divorce Agreement Language Unlocking The Golden Handcuffs Is my spouse entitled to part of my stock options and other stock grants upon our divorce?  How are stock options and restricted stock valued in divorce?  How are stock options treated in a "community property" state?  How are stock options treated in non-community-property states?  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?  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?  How is restricted stock handled in divorce? Who pays taxes when restricted stock or vested company shares are transferred in a divorce settlement?  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?  How does a court determine whether my soon-to-be-former spouse should receive any part of my stock grant?  When are stock options deemed to be acquired for purposes of division in a divorce proceeding?  Are stock options that were granted to me after my spouse and I separated but before the divorce is finalized subject to division in the divorce proceedings?  How do the terms of my employer's plan or my grant agreement affect whether my spouse can be awarded any of my stock options or restricted stock in a divorce?  What is a qualified domestic relations order (QDRO), and how can it be used to divide stock options and restricted stock in divorce settlements?  Does it matter whether the stock options are for past service or for future service?  Do courts use any rules of thumb to decide which stock options are marital property, and to divide stock options?  How are ISOs usually handled in divorce?  In a divorce case, how do you argue that underwater stock options have value?  How do I obtain details of my estranged spouse's stock grants for negotiating our divorce agreement?  How are stock options valued when I give my spouse money or other property instead of transferring the options?  Are stock grants considered in determining child support and alimony payments?  Can an ISO be divided in a divorce?  In a divorce agreement, I am transferring to my former spouse ISO stock that has not met the holding period requirement. Is this a disqualifying disposition?  Can proceeds from stock options be garnished to pay a creditor, an ex-spouse, or a tax authority?  In personal bankruptcy, can stock options be attached by creditors?      Life Events: Disability What happens to my stock grants if I become temporarily disabled?  What happens to my stock options if I become permanently disabled?  What would happen to my performance share grant if I were to lose my job, retire, become disabled, or die?  How is "permanent disability" usually defined?  When I am no longer with my company (e.g. because of job loss, disability, or death), will tax-law limits or deadlines dictate when I must exercise an ISO?  Are the disability rules the same for ISOs?  Does income from stock options affect my payments under disability policies or pension plans?  Does vesting continue while I am on a leave of absence or a sabbatical?  Does the reason for my leave of absence or sabbatical affect vesting?  Does maternity leave stop my vesting?  What are the most common periods after termination during which stock options can be exercised? Does the reason (e.g. disability, early retirement) matter?  Do special rules determine when a leave of absence is a termination of employment for the purposes of ISOs?      Life Events: Death Stock Options After Death: Learn Before It's Too Late (Part 1)  Stock Options After Death: Learn Before It's Too Late (Part 2)  Getting It Right What happens to my stock options if I die before I exercise them?  Would my death automatically accelerate the vesting of my stock grants?  What are common periods that stock plans allow for exercising stock options upon death?  What are the most common periods after termination during which stock options can be exercised? Does the reason (e.g. disability, early retirement) matter?  Does the post-death exercise period begin to run on the day after my death or only when my administrator, executor, or heir has authority to exercise the options?  Can I name a beneficiary for my stock options, ESPPs, stock appreciation rights, or restricted stock?  After my death, what happens to any company shares that I own?  If I die, what will happen to my ESPP participation and the holding period rules?  What would happen to my performance share grant if I were to lose my job, retire, become disabled, or die?  Once my in-the-money options vest, are they mine forever?      Life Events: Death Taxes Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 1)  Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 2)  Charitable Remainder Trusts (CRTs) And Your Company Stock (Part 3)  The Use Of GRATs With Company Stock To Reduce Taxes: Hurry Before The Rules Change  After my death, at what times might my stock options be taxed?  UPDATED! How would my stock options be taxed and valued for estate tax purposes upon my death?  How are shares of company stock that I received from prior option exercises or restricted stock vesting valued for federal estate-tax purposes after my death? Is there a step-up in the basis of the stock?  What are the federal income tax consequences if my estate or beneficiary sells stock that I received from a prior option exercise or from restricted stock vesting?  At death, the value of options is included in the gross estate for estate tax purposes. But what happens if the stock's value drops below the exercise price and the options expire unexercised?  What are the federal income tax consequences if my estate or beneficiary exercises nonqualified stock options (NQSOs) after my death?  What are the federal income tax consequences if my estate or beneficiary sells the NQSO stock it has exercised and held?  Do tax withholding and reporting apply to NQSOs exercised by the estate or beneficiary?  How does IRD or "income in respect of a decedent" apply to stock options and other stock grants?  When I am no longer with my company (e.g. because of job loss, disability, or death), will tax-law limits or deadlines dictate when I must exercise an ISO?  What is the tax treatment of ISOs after death?  What would happen to my AMT credit at death, or to an AMT credit created by my estate?  What is the tax treatment of ESPP shares at death?  If I die, the vesting of my restricted stock will accelerate. How would this be taxed as part of my estate?  At death, do tax withholding and reporting apply to restricted stock if the vesting is accelerated or allowed to continue?  Why would I transfer stock options to a living trust? What is the tax impact?  M&A     M&A: Basics My Company's Being Acquired: What Happens To My Stock Options? (Part 1)  The Acquisition: All's Well That Ends Well?  I see many different terms used to describe corporate transactions. What is the difference between a merger, an acquisition, and a divestiture?  How is the treatment determined for stock options and restricted stock in a merger or acquisition?  What is a "lockup"?  How might the terms of my company's stock plan or my grant agreement affect the treatment of my options and restricted stock if my company were acquired?  What affects the willingness of a buyer to cash out or convert the seller's options other than the deal's tax structure?  How can I find out how much I will make from an acquisition of my company?  If my company is bought for stock of the acquirer, will I be able to purchase the same number of shares in the buyer as I am allowed to with my current options and restricted stock?  What happens if our company's stock price or the acquirer's stock price fluctuates before the acquisition is completed?      M&A: Impact My Company's Being Acquired: What Happens To My Stock Options? (Part 1)  My Company's Being Acquired: What Happens To My Stock Options? (Part 2)  Understanding The Risks In Your Pre-IPO Stock Options (Part 1)  Private Equity Transactions: Understanding Some Fundamental Principles What will happen to my vested stock options if my employer is acquired by another company?  What could happen to my restricted stock in an acquisition of my company?  What will happen to my unvested stock grants if my company is acquired or if it merges with another company?  Can an acquisition of my company accelerate the vesting of my stock options?  How do "change of control" and trigger provisions in stock plans generally work to accelerate vesting?  What portion of unvested options is normally accelerated in a change of control?  Once acceleration of vesting has occurred, how long do I have to exercise my newly vested stock options in the seller?  A private equity firm is buying my company. What will happen to my stock options and restricted stock?  In an acquisition, what happens to my underwater stock options?  What happens to my performance shares in an acquisition of my company?  What happens to my stock options in a part-cash, part-stock deal?  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?  My company is selling the division where I work. I will no longer work for that company but will keep the same job under the new corporate owner. What will happen to options and restricted stock in the divestiture?  How will I know that a change of control has occurred?  After an acquisition is completed, can I immediately sell the shares I receive in the buyer?  Will I be awarded additional stock options or restricted stock before an acquisition transaction is completed?  What happens to my ESPP when my company is acquired?  In an acquisition, what happens to money that has been waiting to purchase shares in my ESPP?  What happens to my stock options if my company acquires another business?  My company is private. Should I exercise my stock options before the acquisition of my company is completed?  I just heard that the company I did consulting work for is about to go public or be acquired. What should I do about my options or stock?      M&A: Taxes My Company's Being Acquired: What Happens To My Stock Options? (Part 3)  What's the tax treatment of my stock options in an acquisition?  What is the tax treatment of my restricted stock in an acquisition?  How can tax consequences to the buying and selling companies in an acquisition affect the treatment of my stock options?  Does the accelerated vesting of my stock options, restricted stock, and/or performance shares in a change of control or termination have any tax impact on me, such as for ISOs and golden parachute payments?  I have an earnout or installment payment of additional shares because my company met performance goals. How are these additional shares taxed?  In an upcoming merger, the acquirer will pay cash for my outstanding NQSOs and ISOs. Can I avoid some of the Social Security and Medicare taxes by exercising vested options now?  Can the annual limit of $100,000 in exercisable ISOs be adversely affected by any post-grant events, such as job termination or the acceleration of vesting in a merger?  I exercised ISOs and am hoping to wait 12 months before selling to get the favorable ISO tax treatment. What happens in a cash M&A deal when I'm trying for the one-year holding-period mark but the buyer pays cash for the stock? Is there any way around incurring a disqualifying disposition?  I bought stock in my company's ESPP and am hoping to wait 12 months before selling to get the favorable ESPP tax treatment. What happens in a cash M&A deal when I am trying to reach the one-year holding-period mark but the buyer pays cash for the stock before then? Is there any way around a disqualifying disposition?  SEC Law     SEC Law: Basics Compliance Concerns That Executives Must Understand To Prevent SEC, IRS, And Corporate Problems (Part 1): Company Stock Trades  What is insider trading? Do you have to be an "insider" or executive to commit it?  What is restricted stock? Does it differ from restricted securities?  Are sales of shares by executives and directors of a public company subject to any securities-law restrictions?  My company's stock is now essentially worthless because of securities fraud by senior executives. Can I claim a casualty or theft loss on my tax return?  What is the SEC?  UPDATED! Can the SEC, the Treasury, or my company take away stock option gains, restricted stock, and performance shares after accounting fraud has occurred?  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?  What are Forms 3, 4, and 5? When are they filed with the SEC?  What is an affiliate, and why does affiliate status affect the ability to resell company stock?  What are the rules for resales of restricted securities? What requirements must affiliates (e.g. executives and directors) follow to sell their stock to the public under Rule 144?  What are "blackout periods" and "window periods"?  UPDATED! Do blackout or lockdown periods exist for stock plans? Are there periods during which you can't exercise options or buy stock in an ESPP?  Are senior executives and directors banned from trading company stock during a 401(k) blackout period?  If I gift my company stock to a grantor-retained annuity trust (GRAT), do the securities laws still apply?  Is the date for determining taxes delayed if the stock I receive is not registered with the SEC and I cannot immediately sell it?  My company backdated more stock options than just those of the senior executives. How does this affect employees like me and the taxation of my stock grants?  I am an affiliate. I plan to exercise my options and sell the shares. What forms do I file with the SEC, and when?  If I am an "affiliate" of my company, how difficult is it to register my stock for resale to the public?  Do federal securities laws impose any reporting requirements on a public company's officers, directors, and significant stockholders?  Are there special public-company notice requirements for senior executives or directors before they exercise and sell?      SEC Law: Insider Trading Prevent A Martha Stewart Moment: Insider Trading In Your Company's Stock  How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock (Part 1)  Insider Trading Prevention & Education Elevated Enforcement Insider Trading Makes Comeback In Options 20 Years After Boesky What is insider trading? Do you have to be an "insider" or executive to commit it?  UPDATED! What is insider tipping?  Why are insider trading and tipping illegal?  How do civil and criminal insider-trading cases differ?  What are the civil penalties for insider trading?  What are the criminal penalties for insider trading?  Can I receive a bounty for providing information about someone who has committed insider trading?  Aren't my stock-trading records confidential? How could the stock exchanges and the SEC get them and other information about me?  Do the rules of insider trading and tipping apply only in business contexts? Do they also apply to what I tell friends and family?  Does it matter whether the person who violates the insider-trading laws lives outside the US?  Is there any risk of violating the insider trading or Section 16 rules after I leave the company by exercising options or selling company stock?  Do Rule 144, Section 16, and the insider-trading rules apply to gifts and donations of company stock by senior executives or directors?  My company's stock price has substantially dropped. As an executive, I want to buy the stock on the open market to show confidence to investors and analysts. Do I still need to worry about insider trading and liability for short-swing profits under Section 16?  What if at the time of sale I possessed inside information that did not affect my decision to sell? For example, what if I decided months before to exercise and sell stock when the stock price reached a certain point?  Will the SEC really investigate and prosecute small insider-trading violations?  UPDATED! With insider trading, do I need to be caught in the act to be investigated or prosecuted?  Is lying during an SEC investigation a crime?  Can a grant of stock options be an insider-trading violation?  Can the exercise of stock options be an insider-trading violation?  Can a purchase of shares through an ESPP ever be considered insider trading?  If I know something important about our company or another one, when can I use that information to trade? Does the window period always tell me when?  What are "blackout periods" and "window periods"?  How do blackout periods affect my ability to sell shares?  How do blackout periods affect stock option exercises and the tax treatment?  If my restricted stock vests during a blackout period or when I know secret stock-price-moving information, can I be charged with insider trading?  Can I commit insider trading by buying or selling company stock in my 401(k) when I know important, confidential information?  Does insider trading include buying stock in a supplier or a customer of my company and not in my own company?  Can an insider-trading violation bar me from serving as an officer or director?  Can I sell my company stock through a blind trust, or another type of trust, as a defense against insider trading?      SEC Law: Rule 10b5-1 Trading Plans How To Use Rule 10b5-1 Trading Plans To Sell Company Stock (Part 1)  How To Use Rule 10b5-1 Trading Plans To Sell Company Stock (Part 2)  How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock (Part 1)  Elevated Enforcement The SEC Is Eyeing Insider Stock Sales What is a Rule 10b5-1 trading plan?  What are best practices for Rule 10b5-1 trading plans?  I want to set up a program with my company and broker in which I automatically exercise options and sell stock to pay a regularly expected bill as it's received, such as my child's tuition. Can this prearranged selling plan violate insider trading laws and my company's blackout rules?  UPDATED! How widely used are Rule 10b5-1 trading plans? Is information about their use available?  How long do Rule 10b5-1 trading plans last?  Can I make trades in company stock outside the Rule 10b5-1 plan?  Can my company force me to use a Rule 10b5-1 trading plan? Can it prohibit me from using one?  Is it possible to violate insider-trading laws by terminating or modifying my Rule 10b5-1 trading plan?  Should I set up a Rule 10b5-1 trading plan to cover the stock I will sell or surrender to pay withholding taxes when my restricted stock vests?  Can I sell my company stock through a blind trust, or another type of trust, as a defense against insider trading?  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?  Must I suspend my Rule 10b5-1 plan if my stock trade date occurs during a sudden blackout period?  My company is private. Can I set up a Rule 10b5-1 trading plan now so that I may start selling after the IPO lockup period?      SEC Law: Rule 144 How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock (Part 2)  What is an affiliate, and why does affiliate status affect the ability to resell company stock?  What are restricted securities? Do they differ from restricted stock?  What are the rules for resales of restricted securities? What requirements must affiliates (e.g. executives and directors) follow to sell their stock to the public under Rule 144?  For Rule 144 resale requirements, what is the difference between (1) restricted securities I own as a company officer or director that are not registered with the SEC and (2) company shares I bought on the open market?  Do the holding period and other requirements under Rule 144 always apply to sales of company stock by both senior executives and regular employees?  If I am no longer an officer or director of a public company, do I still need to meet the requirements of Rule 144 to sell my company stock?  What are the company-information requirements of Rule 144 that affect my stock sales?  How soon after an IPO can I sell my stock under Rule 144?  Does the period I held unexercised options count towards the holding period for resales of unregistered securities under Rule 144?  What are the volume limitations imposed on an affiliate under Rule 144?  How and when is Form 144 filed?  Do I still file Form 144 even though I have held the restricted securities long enough?  What regulations govern the sales activities of brokers under Rule 144?  Is the tax treatment different if I work for a pre-IPO company? For example, are taxes delayed at exercise until the stock is registered with the SEC?  How does an affiliate sell shares in a private resale?  After an acquisition is completed, can I immediately sell the shares I receive in the buyer?  Do Rule 144, Section 16, and the insider-trading rules apply to gifts and donations of company stock by senior executives or directors?  How do I have the legend removed from my restricted securities?  Do securities laws and regulations place restrictions on stock options or shares granted to consultants and on their freedom to sell the stock?  Are there any special securities law issues and filing requirements with stock appreciation rights (SARs) for senior executives and directors?      SEC Law: Section 16 How Executives And Directors Can Avoid SEC Troubles Before Trading Their Company Stock (Part 2)  Late Options Filings Proliferate, Firm Says What are Forms 3, 4, and 5? When are they filed with the SEC?  I am a senior executive. When and how do I make my Form 4 filing for restricted stock, restricted stock units, and performance shares?  Where are Forms 3, 4, and 5 filed?  If I make a mistake in my filings of Form 3, Form 4, or Form 5, how do I fix an error?  Will my company help me prepare and file Forms 3, 4, and 5?  Is the information filed on Forms 3, 4, and 5 confidential?  When I sell stock under a Rule 10b5-1 plan, do I report the sale differently on Form 4?  What is the penalty for a late or omitted filing of Form 3, 4 or 5?  Can I exercise stock options or sell company stock not included in my initial filing of ownership on Form 3?  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?  What is "short-swing profits" liability, and how does it affect my stock options and restricted stock?  If I must disgorge short-swing profits under Section 16(b), do I still have to pay tax on those profits? Do I get a tax deduction for the disgorgement?  My company's stock price has substantially dropped. As an executive, I want to buy the stock on the open market to show confidence to investors and analysts. Do I still need to worry about insider trading and liability for short-swing profits under Section 16?  If I gift my company stock to a grantor-retained annuity trust (GRAT), do the securities laws still apply?  Do senior executives or directors need to make personal SEC filings, such as Forms 4 and 5, for nonqualified deferred compensation plan participation or distributions?  Is there any risk of violating the insider trading or Section 16 rules after I leave the company by exercising options or selling company stock?  If I enter into a hedging transaction in my company stock, as a senior executive do I need to report this to the SEC on Form 4? Can I be banned from hedging?  I am a senior executive and plan to sell enough restricted stock at vesting to cover the taxes I will owe. Is this sale still subject to the short-swing profit rules under Section 16?  If I sold my stock immediately upon exercise or at vesting, the transaction would violate the insider-trading laws and the laws of short-swing profits under Section 16(b) because I had a purchase within six months of the sale. Would this then delay the date of the tax treatment?  If my restricted stock vests during a blackout period, or if the stock sale on the vest date would trigger Section 16 short-swing profit liability, is the tax treatment delayed until a later date?  Do Rule 144, Section 16, and the insider-trading rules apply to gifts and donations of company stock by senior executives or directors?  Can I donate shares and then immediately buy the same number of shares on the open market?  I am an officer in my company and want to participate in our ESPP. Do Section 16 reporting and liability for short-swing profits raise any special concerns with an ESPP?  Are there any special securities law issues and filing requirements with stock appreciation rights (SARs) for senior executives and directors?  Pre-IPO     Pre-IPO: Basics Understanding The Risks In Your Pre-IPO Stock Options (Part 1)  Negotiating And Structuring Your Stock Compensation (Part 2): Privately Held Companies  Your Company Goes Public: How Your Stock Compensation May Change  Stock Grant Sizes In Pre-IPO Tech Companies  Drafting A Private Company Equity Incentive Plan Google Options Make Masseuse A Multimillionaire Options Have Lost Their Luster, But Many Still Lust For Them Picture Improves For Private-Company Pay Can some types of companies not offer stock options or other forms of equity compensation to their employees?  What are restricted securities? Do they differ from restricted stock?  Why doesn't my employer offer me equity compensation?  UPDATED! How do private companies create liquidity for employees' options and stock, other than going public or getting acquired?  How do I value options and stock in a private company?  Any survey data on stock grants in privately held companies?  How does a private company decide on the size of a stock grant? Any data on grant sizes?  Can a private company contractually restrict my ability to resell my shares, or do the securities laws limit my ability to resell them?  In a privately held company, can restricted stock and stock option grants be structured so that they vest only when the company goes public or gets acquired? How is this taxed?  Is the tax treatment different if I work for a pre-IPO company? For example, are taxes delayed at exercise until the stock is registered with the SEC?  Is the date for determining taxes delayed if the stock I receive is not registered with the SEC and I cannot immediately sell it?  Are stock option and restricted stock grants negotiable? What terms are negotiable at hire?  How much will my options be worth in the future?  How do pre-IPO and other private companies determine exercise prices?  Can consultants or independent contractors be granted stock options or company stock? How common is this practice?  A private equity firm is buying my company. What will happen to my stock options and restricted stock?  What is a buyback? Is my employer required to buy back my shares when I leave the company?  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?  My employer is an S-corporation. Can I still be granted stock options?  Our company is a partnership. Are stock options available?  Can limited liability companies use stock options or make other stock grants?  What is a "phantom stock plan"?  How is fair market value (FMV) determined for setting my exercise price? What are common company practices?  Does the IRS have any rules on setting exercise prices?  Can I have the exercise price of a new stock option grant lowered or backdated? What is the controversy over backdating?  Can my company lend me money to buy its stock, exercise an option grant, or pay taxes on restricted stock at vesting? Can it later cancel or modify that debt?  Are there any rules of thumb for how many options or shares of stock that consultants should receive on a project?  My friends at public companies do cashless exercises of their stock options. Can I do this with stock options at my pre-IPO company?  I am a consultant. If I have stock options in a pre-IPO company, do I have the right to receive financial statements or shareholder reports?  What tax treatment applies if I exercise vested pre-IPO options that now cost more to exercise than they are worth?  Why is my private-company employer requiring me to make representations about securities-law compliance before I exercise my options?  Why is my private-company employer making me sign a "stockholders' agreement" before I exercise my stock options?  Why is dilution important to me? How do stock grants affect it?  Can I protect myself from dilution and liquidity preferences in my pre-IPO company?  I am getting stock options in an early-stage pre-IPO company. How much dilution can I expect when the company raises more private financing?  I purchased my ISO shares in a pre-IPO company that went bankrupt without going public. Do I owe AMT? I still have not received a stock certificate proving I have shares, nor do I expect I will ever be sent one.  I spent a significant amount of money to exercise options last year in a pre-IPO company that not only never went public but went out of business. I also paid taxes on the spread at exercise. Is there any way I can reclaim the taxes or get a write-off for the money I paid on my worthless stock?      Pre-IPO: Early-Exercise Options Pre-IPO Company Employees: Their Stock Option Tax Dilemma  Early-Exercise Options: Clarifying The Confusion And Risks (Part 1)  Early-Exercise Options: Clarifying The Confusion And Risks (Part 2)  Early-Exercise ISOs Complicated By Final IRS Regulations  Final ISO Regulations Affect Stock Plan Design, Optionholders, And Advisors (Part 1)  IRS And Treasury Warn Against Frivolous Tax Arguments Surrounding Stock Options Why do some companies grant stock options that are immediately exercisable before they vest and are subject to a repurchase right by the company?  What is a "repurchase right"?  When should I prefer to immediately exercise an option into stock that is still subject to vesting and/or a company repurchase right? What is the risk?  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?  Can my company help me file my Section 83(b) election?  Is a Section 83(b) election that taxes you on the value of the stock option spread at early exercise (vesting required for resale) ever revocable or rescinded?  Can I exercise my options before they are vested and make a timely Section 83(b) election to be taxed on the spread at that point?  I have early-exercise options. If I leave my company before the stock vests, or if the company goes out of business, is it required to repurchase my shares?  My pre-IPO company lets me exercise options still subject to vesting. I did so and received stock subject to a company repurchase right. I am now leaving my job before the shares vested. What are the tax consequences if I forfeit the stock for which I have made an 83(b) election to be taxed at the time of exercise?  I exercised stock options in a pre-IPO company and paid tax on the spread at exercise. The price used for the fair market value (FMV) now seems high, given the expected IPO price. Can I use the IPO price to recover taxes that were paid?      Pre-IPO: Going Public Your Company Goes Public: How Your Stock Compensation May Change  Pre-IPO Company Employees: Their Stock Option Tax Dilemma  Understanding The Risks In Your Pre-IPO Stock Options (Part 2)  Techniques To Defer Or Reduce Taxes On The Sale Of Your Company's Shares (Part 1): QSB Stock  Stomach Volatility In Your Company's Stock Without Losing Your Mind  From Founders To Decorators, Facebook Riches IPOs Give Companies Instant Wealth But Lots Of Headaches When Going Public Can Spawn A Merger After the IPO, are there any restrictions on how soon I can sell shares of my company's stock?  My company will go public soon. Can it grant me options now at an exercise price that is substantially lower than the expected IPO price?  In a privately held company, can restricted stock and stock option grants be structured so that they vest only when the company goes public or gets acquired? How is this taxed?  How soon after an IPO can I sell my stock under Rule 144?  A private equity firm is buying my company. What will happen to my stock options and restricted stock?  My company is private. Can I set up a Rule 10b5-1 trading plan now so that I may start selling after the IPO lockup period?  Do securities laws and regulations place restrictions on stock options or shares granted to consultants and on their freedom to sell the stock?  What is a "lockup"?  UPDATED! Are there ways around a lockup?  UPDATED! If I exercise my vested options during a lockup period, does the date for calculating the spread occur at exercise or at the end of the lockup, when I can sell the stock?  I exercised stock options in a pre-IPO company and paid tax on the spread at exercise. The price used for the fair market value (FMV) now seems high, given the expected IPO price. Can I use the IPO price to recover taxes that were paid?  If I am an "affiliate" of my company, how difficult is it to register my stock for resale to the public?  What are the company-information requirements of Rule 144 that affect my stock sales?  Why do some companies issue "tracking stock"?  How do I have the legend removed from my restricted securities?