http://www.mystockoptions.com Our latest content on stock options, ESPPs, restricted stock, stock appreciation rights (SARs), and other stock option compensation for employees and executives. Copyright 2000-2012 myStockPlan.com, Inc. en-us Tue, 07 February 2012 07:05:00 EST http://www.mystockoptions.com/faq/index.cfm/ObjectID/FD450F9F-5AF7-4EF9-9808A04DBC5BAD70 For people who sold shares in 2011, major changes in tax reporting and filing are taking effect this tax season... http://www.mystockoptions.com/faq/index.cfm/ObjectID/6A5CFDE9-5E3D-4BBE-986198AF96F7CDD0 More information is now reported on this form than in past years. This may prove to be more helpful, but it also may be more confusing. Issued to you by your brokerage firm, IRS Form 1099-B is an important document that you must have to complete your http://www.mystockoptions.com/faq/index.cfm/ObjectID/B4EAB741-4F22-4514-9584E9CE11FCB280 When your W-2 income is added to the price you paid for the stock, this is your cost basis on your tax return. The table below presents the compensation portion of your tax basis for all types of stock grants and ESPPs... http://www.mystockoptions.com/faq/index.cfm/ObjectID/9C96F52A-DF42-41BC-9681196BDEA3E8F5 The new Form 8949 is where you now list the details of each stock sale on your tax return, while the revised Schedule D is where you now merely aggregate the column totals from Form 8949 to report your total long-term and short-term gains and losses. http://www.mystockoptions.com/faq/index.cfm/ObjectID/A89202E6-C505-4328-9C785FABAEE5CE9E Changes in executive compensation and equity pay practices stemming from the downturn of 2008 and 2009 were predicted to be extensive and vigorous. Experts at consulting and research firms have been busily analyzing corporate stock plan practices sinc http://www.mystockoptions.com/articles/index.cfm/ObjectID/207E576D-88B8-4D63-9DE082386666BAE3 NEW! Whether it is expected or not, job loss is an upheaval that gives you a lot to think about. However, as you clear off your desk, don't forget your stock compensation. Too many departing employees have lost valuaMatt Simon http://www.mystockoptions.com/articles/index.cfm/ObjectID/10A6AE34-B31D-4D9B-A029A0312CD097CD As private companies prepare for their market debuts, they make changes in their equity compensation programs. This article looks at some of the shifts you can expect in your stock grants both during the period leading up to your IPO and after your coRyan Harvey and Bryan Smith http://www.mystockoptions.com/faq/index.cfm/ObjectID/E273BA3E-3093-4060-8D677858AD27318B Backup withholding is a form of tax withholding on income from stock sales, along with interest income, dividends, or other types of payments that are reported on Form 1099. Your brokerage firm is required to make backup withholding if you are... http://www.mystockoptions.com/faq/index.cfm/ObjectID/ADB2461C-B0DD-4FA3-94F46F6244135757 The compensation philosophies of companies are continually changing under the influence of many factors, from accounting rules to... http://www.mystockoptions.com/faq/index.cfm/ObjectID/F773DA5E-A8E1-49E7-BDF30E7D06CB1964 The exercise and the sale are separate. Whether you sell the shares at the time you exercise stock options depends on various factors. At exercise, you can usually... http://www.mystockoptions.com/articles/index.cfm/ObjectID/5B7C9A09-6FF0-44D6-8BDFA78C7F9A75DF Your company's employee stock purchase plan (ESPP) can be a strong financial benefit, but the rules and taxation can be tricky. Part 2 delves the complicated topics of holding periods, tax treatment, and the impact of various life events on your ESPP Matt Simon /articles/index.cfm/catid/AB6E12DA-295D-42B9-BA7D1CAC6F762CB4 UPDATED FOR 2012! Learn how to report your sales of stock on the new Form 8949 and revised Schedule D of IRS Form 1040.The myStockOptions.com Tax Team http://www.mystockoptions.com/articles/index.cfm/ObjectID/ECA92188-F931-4094-BDDB902C949B4E0E NEW! The stock-sale information provided by brokers on IRS Form 1099-B has changed. Cost-basis reporting, both for your broker on Form 1099-B and for you on your tax return, is now more complex, confusing, and vulnerable to errors. This article explains the crucial facts you must know to avoid overpaying tax or attracting unwanted IRS attention.Bruce Brumberg /flash/newtaxforms.cfm If there's a way to make learning about tax forms fun, we'll try it. Watch and hear this animated presentation on the expanded IRS Form 1099-B, the new IRS Form 8949, and the revised Schedule D. Learn now to prevent costly tax return mistakes later!Bruce Brumberg http://www.mystockoptions.com/articles/index.cfm/ObjectID/68F9A987-1281-11D5-AF7A000102460375 UPDATED! This tax return season has the potential to be more confusing than most if you sold stock last year. You must now file the new IRS Form 8949 along with the revised Schedule D. This change stems from the expansion of the information that brokers must report to you on IRS Form 1099-B. Read this article for tips on these and other crucial tax return topics.Bruce Brumberg and Lynnette Khalfani http://www.mystockoptions.com/articles/index.cfm/ObjectID/FF6EE2A4-E567-4125-85C84EAEE1E7F20F Restricted stock units (RSUs) have become the most popular alternative to stock options. While RSUs share many of the same issues as restricted stock, there are differences, and it is important to understand the basics of RSUs in their own right.Matt Simon http://www.mystockoptions.com/articles/index.cfm/ObjectID/EB5EA0D7-4F61-4987-8B699BE8D4BEA4BF UPDATED! This tax return season has the potential to be more confusing than most if you sold stock last year. You must now file the new IRS Form 8949 along with the revised Schedule D. This change stems from the expansion of the information that brokers must report to you on IRS Form 1099-B. Read this article for tips on these and other crucial tax return topics.The myStockOptions.com Tax Team http://www.mystockoptions.com/articles/index.cfm/ObjectID/39EA4C3F-5ABF-412A-A455D04B527137CC A growing number of companies are making stock grants that base your profit on more than just your continued employment or an increase in stock price. As companies take a "portfolio approach" to stock compensation, you may be granted performance shares, which you receive only upon the achievement of specified goals. In Part 1 of this series, learn about the basics of performance share grants.Bruce Brumberg http://www.mystockoptions.com/articles/index.cfm/ObjectID/F7D1B3D2-A68C-4857-895113AC07DB21EC Understand financial planning for restricted stock and RSUs. Part 1 discusses the growing popularity of these grants, their special features, and the related tax planning.Richard Friedman http://www.mystockoptions.com/articles/index.cfm/ObjectID/26A61894-283B-11D4-B9070008C79F9E62 Managing your stock options is one of the most complex financial challenges you will face. These 10 rules will help you get the most out of them.Michael Beriss http://www.mystockoptions.com/articles/index.cfm/ObjectID/679627CA-D989-4B3C-87D4D33F1AFEBB0B Successful strategies for equity compensation begin with identifying the role stock grants will play in your life, whether for retirement, college funding, or other goals. The greater the value of your grants, the more important this process becomes. This article provides helpful checklists of points to consider for three different types of investors.Geoffrey M. Zimmerman http://www.mystockoptions.com/articles/index.cfm/ObjectID/6EE8774B-2A04-47CC-A6CD85D8394C56D3 With tax increases possible in the future, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock options now or wait until new rates apply? Part 1 looks at nonqualified stock options.Stanley Trotta with Robert Gordon http://www.mystockoptions.com/articles/index.cfm/ObjectID/3CC8F4D8-BA69-4E78-910C357572EF42EA With tax increases in mind, now may be a good time to re-evaluate your current financial-planning strategy. Should you take action with stock compensation now or wait until new rates apply? Part 2 looks at restricted stock and restricted stock units.Stanley Trotta with Robert Gordon http://www.mystockoptions.com/articles/index.cfm/ObjectID/1E6F76AE-A528-4A94-A00382F15B7FCA44 Your company's employee stock purchase plan (ESPP) can be a strong financial benefit. However, the rules and taxation can be tricky. This two-part article presents six topics you must be familiar with to get the most from your ESPP participation. Part 1 covers enrollment, plan types, and offering/purchase periods.Matt Simon http://www.mystockoptions.com/articles/index.cfm/ObjectID/FEAFAEBB-3B83-4D15-9C3D77F1AF99FDF1 Your company's employee stock purchase plan (ESPP) may be one of the best employee benefits in your total compensation package. However, to maximize the value of your ESPP, you need to understand how it works. This starts with knowing its basic structure and key terms, and how ESPPs work in both up and down markets.Alisa Baker http://www.mystockoptions.com/articles/index.cfm/ObjectID/07F92775-0741-4874-BBBFFBC6B834D5D2 Stock purchases made through an ESPP during a calendar year are reported to you and the IRS on Form 3922 early in the following year. This article explains what you need to know about the information on the form, and how the form can help you better understand the complexities of ESPP taxation.Bruce Brumberg http://www.mystockoptions.com/articles/index.cfm/ObjectID/47878A79-AF88-4502-A8B536A069A95DD6 Stock compensation is important for retirement planning. Understand the issues and explore strategies, whether you are planning for retirement, are nearing retirement, or have retired already.Carol Cantrell http://www.mystockoptions.com/articles/index.cfm/ObjectID/337EC7FF-E522-4761-A1B4EA2C6069444E UPDATED! When you and your spouse decide to split, your stock options will probably be divided too. Become familiar with the crucial issues related to stock options in divorce, including the treatment of vested and unvested stock grants, approaches to valuation, and the division of options in the property settlement.Linda Olup http://www.mystockoptions.com/articles/index.cfm/ObjectID/B6B50749-16F1-44F7-AD1AE92686A6B35D UPDATED FOR 2012! Your ability to pay for college, and ultimately have more money for retirement, may rest on your company's stock plan and related financial planning. Part 1 helps you understand the impact that equity grants have on financial aid eligibility.Troy Onink http://www.mystockoptions.com/articles/index.cfm/ObjectID/D014F6E5-72B2-48A6-994BB222445373FE Learn how and when income from ISOs is subject to taxes, including the alternative minimum tax. You must consider taxes at both exercise and sale to put together an optimal strategy.Marilyn Renninger http://www.mystockoptions.com/articles/index.cfm/ObjectID/A6D7D117-BF38-4EDA-AE2306F4C119A53E The tax reductions of the past few years have brought both good and bad news for holders of incentive stock options. While you may have lower capital gains rates when you hold the shares long enough after exercise, it is harder to avoid the risks of the alternative minimum tax (AMT) and to fully recover any AMT credit.Alan Ungar http://www.mystockoptions.com/articles/index.cfm/ObjectID/6DD2144B-A3F5-11D4-AF74000102460375 Several years ago I faced a new situation. I'd been working for a solid Fortune 500 company for a number of years and had a substantial number of stock options, mostly incentive stock options (ISOs). They were quite valuable. What I did not reckon on, however, was the alternative minimum tax. Here is my story. http://www.mystockoptions.com/articles/index.cfm/ObjectID/E9A2332B-D74B-4CCE-8C13F705E5191D33 When you receive a significant portion of your compensation in equity awards, concerns about diversification and cash flow may prompt you to sell company stock regularly. Yet SEC rules, insider-trading policies at your company, and fears of insider-trading allegations can keep you from selling your shares. Rule 10b5-1 trading plans are an ideal solution, as long as they are properly drafted and implemented.Darryl Rains and Sunil Kulkarni http://www.mystockoptions.com/articles/index.cfm/ObjectID/8AD65F4A-5869-4730-B89F4630E435C839 Understand the key issues and limits of hedging NQSOs, including company, SEC, and tax law constraints. Then you can analyze potential hedging strategies for your stock options, such as collars.Robert Gordon http://www.mystockoptions.com/articles/index.cfm/ObjectID/1976EF18-B270-4695-AC48DC23F9BDF663 For employees and executives, international travel and relocation are increasingly common. The taxation of "mobile employees" is always complex, and never more than with equity compensation. Part 1 introduces the key concepts and rules, including the sourcing and apportioning of income.Mark Miller http://www.mystockoptions.com/articles/index.cfm/ObjectID/EA85568D-C296-4762-A43690DDE5336450 The terms of your option grants, the terms of the M&A deal, and the valuation of your company's stock all affect the treatment of stock options in M&A. What happens to your unvested options is the main focus of concern.Richard Lintermans http://www.mystockoptions.com/articles/index.cfm/ObjectID/A070411E-7379-48BC-8215C9BA001E6E52 Your company is being acquired. You worry about losing your job and your valuable stock options. In Part 1 we looked at the importance of your option grant terms. Part 2 examines the acquisition's terms and the valuation of your company.Richard Lintermans