4th QUARTER 2009

TAX CENTER

CONTENT TOPICS: Articles and FAQs

GLOBAL TAX GUIDE: Updates for Australia, India, Japan, Spain, Taiwan, the UK, and the US

GLOSSARY: New terms include FBAR, PARSAP, and more

ASK THE EXPERTS:

  • Is there anything I can do with stock options that have a price higher than the current stock price and are about to expire?

TAX CENTER

Schedule D diagrams! How To Report Sales Of Company Stock

W-2 diagram! What will my W-2 show after I exercise nonqualified stock options?

W-2 diagram! How is an NQSO stock-swap exercise reported on my W-2?

W-2 diagram! What will my W-2 show after I exercise incentive stock options?

W-2 diagram! If I make a disqualifying disposition with my ESPP stock, what will appear on my W-2?

W-2 diagram! If I sell ESPP shares after the required holding periods, 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?

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?

W-2 diagram! What will my W-2 show after the vesting of performance shares?

W-2 diagram! What will my W-2 show after I exercise stock appreciation rights?

What are the biggest mistakes related to restricted stock I can make on my tax return, and how can I avoid them?

What are the biggest mistakes related to stock options I can make on my tax return, and how can I avoid them?

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?

What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise or restricted stock vesting?

Restricted Stock & RSUs: What You Must Know To Avoid Tax Return Mistakes In 2010

Avoid Tax Return Mistakes With Stock Options & ESPPs: What You Need To Know In 2010

NQSOs: Tax Return Tips And Traps

ISOs: Tax Return Tips And Traps

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

How is capital gain calculated?

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CONTENT SECTIONS

Basics

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

What approaches do companies apply to underwater stock options?

If my company or a third party buys my employee stock options for cash, how is this taxed?

What is an options exchange?

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

What tax statement will I receive from my broker after a sale of company stock I acquired by stock option exercise or restricted stock vesting?

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?

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?

Can I rescind a stock option exercise and reverse the tax impact?

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Financial Planning

Better Late Than Never: Stock Option Strategy For The Market Upturn

Equity Compensation Strategies For Down And Rising Markets

Reframing Your Stock Option Exercise Strategy In Volatile Markets

Stockbrokers' Secrets (Part 4): What I Tell My Best Clients About Down-Market Strategy

Psychological Factors Affect Your Stock Option Exercise Decisions

Hedging Your Employee Stock Options (Part 3)

Options For Your Options: Generating Income From Your Vested Employee Stock Options Without Exercising

Can I use my vested employee stock options as collateral for selling call options on my company stock?

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?

If I gift my company stock to a grantor-retained annuity trust (GRAT), do the securities laws still apply?

Does the US have an exit tax?

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Restricted Stock & Restricted Stock Units

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

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?

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

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NQSOs

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

Can stock grant income affect my eligibility for the Making Work Pay Credit in 2009 and 2010?

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?

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ISOs & AMT

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

What is the alternative minimum tax?

What is the latest news about AMT legislation in Congress?

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Employee Stock Purchase Plans (ESPPs)

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

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

What happens to my payroll deductions? What happens if more money has accumulated in my ESPP account than can be used to buy shares?

Can I roll unused ESPP funds into the next purchase period?

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

How much will I pay when I buy stock in the employee stock purchase plan?

Can I begin my participation after an offering period has begun?

What is a "purchase period"?

When are my shares purchased?

What is the "exercise or purchase date"?

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Stock Appreciation Rights (SARs)

What do examples and surveys show about the effects mandatory expensing is having on my stock grants?

What are stock appreciation rights?

How are stock appreciation rights taxed?

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

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Job Events

Strategies For Negotiating A Compensation Package In Down Markets

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

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

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

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Life Events

Retirement Planning With Your Stock Options And Other Stock Compensation (Part 1: Pre-Retirement Planning)

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)

How do stock grants affect Roth IRA contributions and conversions?

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

Nonqualified Deferred Compensation In Divorce

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SEC Law & Rule 10b5-1 Trading Plans

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

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?

If I gift my company stock to a grantor-retained annuity trust (GRAT), do the securities laws still apply?

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M&A

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

What will happen to my unvested restricted stock grants if my company is acquired or if it merges with another company?

A private equity firm is buying my company. What will happen to my stock options and restricted stock?

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Pre-IPO

What are common stock grant sizes at private and pre-IPO companies? Any survey data?

Any survey data on stock grants in private companies?

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?

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

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GLOBAL TAX GUIDE This is premium content

UPDATED OR EXPANDED

Australia
India
Japan
Spain
Taiwan
United Kingdom
United States

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GLOSSARY

NEW!

Escheatment
FBAR
Investor Representation Statement
Market Standoff Agreement
PARSAP

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ASK THE EXPERTS

NEW!

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

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