SARs
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SARs

SARs

Learn about stock appreciation rights (commonly abbreviated SARs), which are functionally similar to nonqualified stock options in many ways.

Browse an overview of this section below, or explore the subtopics to the left. See also the stock appreciation rights section of the Tax Center.

Selected Articles

Basics

Stock Appreciation Rights 101 (Part 1)

Stock appreciation rights (SARs) are being granted by some companies. To help you understand SARs, Part 1 explains the "appreciation," the role of exercises, and taxes at exercise.
Taxes

Stock Appreciation Rights 101 (Part 2) This is premium content

Stock appreciation rights (SARs) are garnering interest among companies. Part 2 discusses taxes, IRS concerns, and why companies like SARs.
Taxes

Stockbrokers' Secrets: Year-End Planning For NQSOs, Restricted Stock, And RSUs This is premium content

Learn about year-end planning for NQSOs and restricted stock/RSUs, including the continued impact of the Tax Cut & Jobs Act and whether the election results should change your decisions.
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Taxes

VIDEO! Tax-Return Forms And Reporting Rules For Stock Sales

Learn how to prevent costly tax return mistakes with this animated presentation on IRS Form 1099-B, IRS Form 8949, and Schedule D.
This is simply a selection of the many articles in this section.
Use the navigation to the left to explore all of the categories in this section.

Selected FAQs

Taxes

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? This is premium content

It is all too easy to make costly tax-return errors that attract unwanted IRS attention. Learn how to prevent mistakes in the 2021 tax season...
Taxes

Form 8949 and Sch. D diagrams How do I report sales of shares from stock appreciation rights on my federal income-tax return? This is premium content

Whether you sell all the stock at exercise or hold the stock and later sell it, you need to complete Form 8949 and Schedule D for the year of your stock sale and file them with...
Basics

What are stock appreciation rights?

SARs, or stock appreciation rights, are contractual rights that entitle you to receive the appreciation from a corresponding number of company shares after the grant date. Instead of exercising a stock option, you...
Show More Selected FAQs
Basics

What are the top 10 questions I should ask about my stock appreciation rights? This is premium content

You should know the answers to the questions in this FAQ's checklist. Understanding the topics involved will help you make the most of your stock appreciation rights (SARs) and prevent costly mistakes...
Taxes

How are stock appreciation rights taxed? This is premium content

When you exercise stock appreciation rights, depending on the plan's design and practices, you receive...
Taxes

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 tax return? This is premium content

Employers usually withhold federal income taxes at the flat rate required for supplemental wages, which is...
Taxes

If I exercise stock appreciation rights (SARs), will I need to make estimated tax payments? This is premium content

At a minimum, at the time of your SARs exercise your company will withhold taxes from the proceeds at the required federal withholding rate for supplemental income. However, depending on your income, this minimum withholding may not be enough. If so, you will need to...
Basics

Does all the stock option content on this website also apply to stock appreciation rights (SARs)?

Much of the stock option content is relevant to SARs. All the key stock option features...
Basics

Why are some companies considering stock appreciation rights (SARs) as an alternative to stock options? This is premium content

ASC Topic 718, formerly called FAS 123(R), requires the expensing of...
This is simply a selection of the many FAQs in this section.
Use the navigation to the left to explore all of the categories in this section.
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