Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
Part 1 looked at the importance of your option grant terms. Part 2 examined the acquisition's terms and the valuation of your company. Now let's look at the tax treatment.
This depends on how grants of restricted stock or RSUs are treated under the terms of the acquisition or merger. For example, if the vesting is accelerated, then you will be...
With stock grants of normal size, you face no tax impact beyond the standard tax treatment. ISOs may be converted to NQSOs should any acceleration of vesting cause...
This structure is more common in acquisitions of private companies or small public companies than in acquisitions of big public companies. Since the grant of the additional shares is tied to performance, the value is taxed as...
One barrier to maintaining ISO status is any acceleration of your vesting that causes more than $100,000 of the grant's value to be first exercisable in...
Tax errors can be costly! Don't draw unwanted attention from the IRS. Our Tax Center explains and illustrates the tax rules for sales of company stock, W-2s, withholding, estimated taxes, AMT, and more.
Basics
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