Taxes Quiz

Taxes Quiz

The taxman cometh. How much do you know about the taxation of your equity compensation?

Please answer the following 10 questions. This quiz is also a course of study. The answer key links to content on the topic for follow-up reading. For in-depth courses of study that offer CE credits, see the myStockOptions Learning Center.

1. When you exercise an NQSO or when restricted stock/RSUs vest, what type of taxable income do you trigger?

2. On what IRS forms do you report capital gains when you sell your company stock?

3. How long must you hold NQSO stock to have the gains taxed as long-term capital gains?

4. The exercise of ISOs can trigger what special tax?

5. What occurs in a disqualifying disposition?

6. In what circumstances is the gain from an NQSO exercise, or the value of restricted stock/RSUs at vesting, reported on Form W-2?

7. With a tax-qualified ESPP, is anything related to a purchase reported on Form W-2?

8. What IRS form do you file if you make a mistake in reporting sales of company stock on your tax return?

9. If you do not make the Section 83(b) election, how are dividends on restricted stock taxed?

10. What are the capital gains tax rates?

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