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3rd QUARTER 2011

TAX CENTER

OTHER CONTENT TOPICS

GLOBAL TAX GUIDE: Australia, China, France, Ireland, and more

GLOSSARY: Backup withholding, quick sale program, and more

ASK THE EXPERTS: Is there any hope for unvested RSUs when you leave your job? Also, naming beneficiaries for stock compensation.

NONQUALIFIED DEFERRED COMPENSATION: The latest major updates and additions at our new site myNQDC.com.


TAX CENTER

NEW! How is IRS Form 1099-B changing for sales of stock acquired from my stock options, restricted stock, or ESPP?

NEW! My company has a basic ESPP without a discount but also without commissions on purchase. Is the unpaid commission considered taxable compensation?

What is the tax basis for calculating gains on Schedule D of my tax return after I sell stock acquired from stock options, restricted stock/RSUs, performance shares, or ESPPs?

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OTHER CONTENT SECTIONS

Basics

NEW! Six ESPP Essentials (Part 1): Enrollment, Plan Type, Purchase Timing

NEW! Six ESPP Essentials (Part 2): Holding Periods, Tax Treatment, Major Corporate Or Personal Events

NEW! Why do many companies grant restricted stock and RSUs instead of stock options?

NEW! What impact can a stock option exchange have on employees who are tax residents outside the US?

Stockbrokers' Secrets (Part 4): What I Tell My Best Clients About Strategy For Volatile Markets

How Does Your Company's Stock Plan Compare? (Parts 1 and 2)

How have stock-market volatility and the economic downturn changed corporate stock grant practices?

Are stock options, restricted stock, and ESPPs subject to ERISA requirements and regulations?

Do stock options and other equity awards really motivate employees?

Is the original vesting schedule ever accelerated by reaching performance milestones or special goals?

How will my broker know which shares to sell? Should I identify them in some way?

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Restricted Stock, RSUs, & Performance Shares

NEW! Stockbrokers' Secrets (Part 8): What I Tell My Clients About Their Restricted Stock And Performance Shares

NEW! Why do many companies grant restricted stock and RSUs instead of stock options?

NEW! How soon after the end of the performance period do I receive the shares?

NEW! Do I get dividends with performance share awards? How are they taxed?

Any data on vesting schedules for restricted stock?

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

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?

What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?

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NQSOs

May I have my employer withhold more taxes upon my exercise of an NQSO than the minimum required amount?

How is fair market value determined for W-2 reporting of NQSO taxable income at exercise and for tax withholding?

How will my broker know which shares to sell? Should I identify them in some way?

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ISOs & AMT

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?

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Employee Stock Purchase Plans (ESPPs)

NEW! Six ESPP Essentials (Part 1): Enrollment, Plan Type, Purchase Timing

NEW! Six ESPP Essentials (Part 2): Holding Periods, Tax Treatment, Major Corporate Or Personal Events

NEW! My company has a basic ESPP without a discount but also without commissions on purchase. Is the unpaid commission considered taxable compensation?

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Stock Appreciation Rights (SARs)

What do surveys and examples reveal about the effects of expensing, stock market trends, and other developments on equity compensation?

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Advisors, Have You Heard About MSO Pro?
Tools to track and model grants for multiple clients, and proactive communications to build relationships. Selected by CPA Wealth Provider Magazine as one of the best new financial-planning products. Click here for more information.

Financial Planning

NEW! Stockbrokers' Secrets (Part 8): What I Tell My Clients About Their Restricted Stock And Performance Shares

Stockbrokers' Secrets (Part 4): What I Tell My Best Clients About Strategy For Volatile Markets

NEW! Do I get dividends with performance share awards? How are they taxed?

NEW! What is the tax impact if my company claws back gains from stock grants?

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?

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Job Events

NEW! Job Loss Quiz

NEW! Job Loss And Your Stock Grants (Part 1): Options, Restricted Stock, And ESPPs

NEW! Job Loss And Your Stock Grants (Part 2): Changes Of Employment Status, Post-Termination Tax, Severance

NEW! What is the tax impact if my company claws back gains from stock grants?

Your Stock Grants May Come With Strings Attached

According to surveys, how are unvested stock options most commonly treated upon various types of termination?

What happens to the vesting of my grant if I switch from full-time to part-time work?

What are the most common periods after termination during which stock options can be exercised? Does the reason (e.g. disability, early retirement) matter?

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

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

How common are clawback provisions?

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Life Events

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

Stock Options After Death: Learn Before It's Too Late (Parts 1 and 2)

After I retire, will my company let my stock options or restricted stock continue to vest, or will it accelerate the vesting?

Can I name a beneficiary for my stock options, ESPPs, stock appreciation rights, or restricted stock?

Does vesting automatically accelerate after death?

What would happen to my performance share grant if I were to lose my job, retire, become disabled, or die?

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SEC Law & Rule 10b5-1 Trading Plans

NEW! Course on SEC Law & Insider Trading (CEP and CFP continuing education credits)

NEW! If I make a mistake in my filings of Form 3, Form 4, or Form 5, how do I fix an error?

Prevent A Martha Stewart Moment: Insider Trading In Your Company's Stock

What are the criminal penalties for insider trading?

Aren't my stock-trading records confidential? How could the stock exchanges and the SEC get them and other information about me?

Can a grant of stock options be an insider-trading violation?

Can I receive a bounty for providing information about someone who has committed insider trading?

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?

Is the date for determining taxes delayed if the stock I receive is not registered with the SEC and I cannot immediately sell it?

What is an affiliate, and why does affiliate status affect the ability to resell company stock?

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M&A

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

What could happen to my restricted stock in an acquisition of my company?

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

How do "change of control" and trigger provisions in stock plans generally work to accelerate vesting?

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Pre-IPO

NEW! Your Company Goes Public: How Your Stock Compensation May Change

What is a "repurchase right"?

Why do some companies grant stock options that are immediately exercisable before they vest and are subject to a repurchase right by the company?

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?

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?

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GLOBAL TAX GUIDE This is premium content

UPDATED OR EXPANDED

Australia
China
France
Hong Kong
Ireland
Japan

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GLOSSARY

NEW!

Backup withholding
Domestic relations order
Quick sale program

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ASK THE EXPERTS

NEW!

I'm updating my will and estate plan. I have stock options and restricted stock units plus participation in my company's employee stock purchase plan. Can I name beneficiaries for these?

I am planning to leave my job in Seattle for a job in San Francisco. At my current company, I have unvested restricted stock units that were scheduled to vest across four years, and I will lose these when I leave. Fortunately, in my new job I will get more RSUs, also vesting over four years, but this means that after I make the switch I will have to wait another four years to get shares. Is this a normal practice? Do you always lose money when you switch jobs? How do I negotiate this? Is my grant in San Francisco likely to be bigger or smaller?

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NONQUALIFIED DEFERRED COMPENSATION

The latest major updates and additions at our new website myNQDC.com:

NEW! Keys To Successful NQDC Plans At Small Companies: A View From The Trenches

NEW! Rabbi Trusts: Benefits, Features, And Key Considerations

NEW! My company plans to spin off my division. What can happen to my NQDC plan and my elections for deferrals and distributions?

NEW! What is a QSERP?

UPDATED! How do I name a beneficiary who would receive my NQDC account balance if I were to die before getting it?

UPDATED! What happens to my NQDC plan in a merger or acquisition?

UPDATED! What if I have a financial or medical hardship? Can I get a distribution?

UPDATED! Can my company put money aside to informally fund the payout even if it has financial problems?

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SUBSCRIPTION & LICENSING INFORMATION

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