MSO Homepage Content 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 2000-2010 myStockPlan.com, Inc. en-us Tue, 09 March 2010 07:05:00 EST UPDATED! Can stock grant income affect my eligibility for the Making Work Pay Credit in 2009 and 2010? http://www.mystockoptions.com/faq/index.cfm/ObjectID/854ABF0F-4C7E-4F86-B1321FAFD84014B7 Yes. The credit has income limits, so a big enough spike in your income from a stock compensation could push you out of the credit range or complicate your tax return... How may the economic downturn affect my company's stock grant practices? http://www.mystockoptions.com/faq/index.cfm/ObjectID/A89202E6-C505-4328-9C785FABAEE5CE9E Changes in executive and equity pay practices during the current downturn may eventually be far more wrenching than those caused by the 2000–2002 market drop. The focus in stock compensation has shifted from adjusting grant practices for mandatory exp Equity Compensation Strategies For Down And Rising Markets http://www.mystockoptions.com/articles/index.cfm/ObjectID/8865D32B-3222-4449-B192B4C05392CEEF NEW! Although stock prices have risen from record lows, many employee stock options remain underwater. However, this is an opportune time to benefit from the current environment. This article presents a range of ideaChris Murphy UPDATED! Can restricted stock and performance shares go underwater? http://www.mystockoptions.com/faq/index.cfm/ObjectID/63A1E711-FE29-457B-A1E551C41373A076 Not in the way stock options can. Restricted stock is worth the full market value of the stock when it vests (or, with restricted stock units, when shares are delivered). It does not matter if... NEW! 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? http://www.mystockoptions.com/faq/index.cfm/ObjectID/39964F5B-5996-45D2-B4E0E84A49C86891 While being rehired is great news, the bad news is that the unvested options were canceled or forfeited when you were laid off, regardless of the reason for termination. As for the vested options... NEW! What are the biggest mistakes related to my employee stock purchase plan that I can make on my tax return, and how can I avoid them? http://www.mystockoptions.com/faq/index.cfm/ObjectID/8EA2C16F-174B-41EE-8A555ED7A084D386 Below are some common mishaps with employee stock purchase plans (ESPPs). Understanding these will help you prevent... NEW! Are public resources available for doing research on a company's stock compensation practices, the grants it is making, and the holdings of its executives? http://www.mystockoptions.com/faq/index.cfm/ObjectID/72358F50-F5C5-40FE-A6506F392B15B68E At least for senior executives, you can find useful information. You can either go to the... NEW! When I take an international assignment, will taxes on my stock compensation be equalized? http://www.mystockoptions.com/faq/index.cfm/ObjectID/E1BF8281-B3E3-4E19-861C5AB2EB3D731C At some companies, international assignments are often accompanied by what is commonly called an equalization package. To give you an incentive to accept the international assignment, the company agrees to... UPDATED! How do stock grants affect Roth IRA contributions and conversions? http://www.mystockoptions.com/faq/index.cfm/ObjectID/5847AE52-3FF2-4F34-A2EE62CF1F288AC1 The grant itself has no impact. The compensation income generated from exercise or vesting can affect... NEW! 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? http://www.mystockoptions.com/faq/index.cfm/ObjectID/A405E267-7518-456C-9270B6C065F853C2 Perhaps, depending on the structure of the plan. The IRS wants to know about foreign accounts of US taxpayers to be sure taxes are paid on any earnings. Any "US person" with a financial interest... UPDATED! Any survey data on stock grants in private companies? http://www.mystockoptions.com/faq/index.cfm/ObjectID/E195D7B4-4B10-4B18-8245AE76BA97FD7C Examples from surveys show that... Hedging Your Employee Stock Options (Part 3) http://www.mystockoptions.com/articles/index.cfm/ObjectID/07BF629E-4A3F-490A-B8D2350F15F588F7 NEW! A regulatory change in 2009 by the SEC now lets unexercised employee options act as collateral for listed publicly traded options. Learn about the rules, possibilities, and limits of this technique.Robert Gordon NEW! Can I rescind a stock option exercise and reverse the tax impact? http://www.mystockoptions.com/faq/index.cfm/ObjectID/551AAF80-3EEC-4B1B-93251B3DBF1DAC84 Only in very limited circumstances, and your company needs to allow the rescission. The company would... UPDATED! 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? http://www.mystockoptions.com/faq/index.cfm/ObjectID/5D0ED5F5-7A9C-4657-995017987C2F8420 Companies often give employees access to their stock option, ESPP, and restricted stock holdings and transactions with paper statements and/or through a website. Apart from the W-2 and 1099 requirements, Section 6039(a) of the Internal Revenue Code re UPDATED! What is a "grant date" in an ESPP? http://www.mystockoptions.com/faq/index.cfm/ObjectID/D943A754-30A9-11D4-B9080008C79F9E62 The grant date is usually the first day of the offering period. This is an important date because... NEW! 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? http://www.mystockoptions.com/faq/index.cfm/ObjectID/5566ADB5-0AD9-4DF3-A7A6A8F21D64BE28 The imposition of forfeiture, transfer, and buyback restrictions on you when a new investor acquires stock... UPDATED! 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? http://www.mystockoptions.com/faq/index.cfm/ObjectID/DC69338E-E012-4901-8CD0385BB805D4B3 A casualty or theft loss would allow you to deduct the lost amount against your ordinary income, subject to some limits. However, Treasury regulations and court rulings would probably stand in your way. Nevertheless, what you can do is... The Use Of GRATs With Company Stock To Reduce Taxes: Hurry Before The Rules Change http://www.mystockoptions.com/articles/index.cfm/ObjectID/E19CF7B6-64E9-4CF9-9E0F9304DF2ACB50 NEW! The grantor-retained annuity trust (GRAT) is one of the best techniques currently available for transferring company stock or other investable assets to family members with little or no estate or gift tax cost. Elyse G. Kirschner and Carlyn S. McCaffrey Avoid Tax Return Mistakes With Stock Options & ESPPs: What You Need To Know In 2010 http://www.mystockoptions.com/articles/index.cfm/ObjectID/68F9A987-1281-11D5-AF7A000102460375 Tax returns can be onerous. Read this article if you are puzzled by Form 1099-B or don't know how and where to report sales of company stock from options or employee stock purchase plans.Bruce Brumberg and Lynnette Khalfani How To Report Sales Of Company Stock /articles/index.cfm/catid/AB6E12DA-295D-42B9-BA7D1CAC6F762CB4 UPDATED FOR 2010! Learn how to report your sales of company stock on Schedule D of IRS Form 1040. Our comprehensive guide to Schedule D reporting covers sales of stock from nonqualified stock options, incentive stock options, restricted stock, restricted stock units, performance shares, employee stock purchase plans, and stock appreciation rights.The myStockOptions.com Tax Team Restricted Stock & RSUs: What You Must Know To Avoid Tax Return Mistakes In 2010 http://www.mystockoptions.com/articles/index.cfm/ObjectID/EB5EA0D7-4F61-4987-8B699BE8D4BEA4BF Restricted stock or restricted stock units (RSUs) bring their own special issues to your tax return, and they can be more complicated than you think. Avoid pitfalls with reporting any shares sold for withholding, your income at vesting, any dividend income, your capital gains at sale, and more.Bruce Brumberg How To Avoid The Most Common Stock Option Mistakes (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/0E38632B-768F-4A08-A446B71F095C442E Avoid the mistakes others made during prior ups and downs in the stock markets. Common mistakes arise in nine different situations, including termination, mergers, financial planning, term expiration, and life events.Beth Walker Better Late Than Never: Stock Option Strategy For The Market Upturn http://www.mystockoptions.com/articles/index.cfm/ObjectID/6966FBA7-FCA8-429E-97F4760A3B4B3A79 The stock markets will one day rise again. When they do, question the urge to exercise your options for quick profits as soon as possible: exercising too early can be a big mistake.Michael Beriss Reframing Your Stock Option Exercise Strategy In Volatile Markets http://www.mystockoptions.com/articles/index.cfm/ObjectID/B65CE489-AA17-4318-9A22487EC6465F4D NEW! Your option grant terms and the behavior of your company's stock price are only part of your financial-planning story in volatile markets. Equally important is the price movement of what you will buy with the proceeds from an option exercise and stock sale. As this article explains, relative changes in price, not absolute changes, are what matter.Tom Davison Why You'll Learn To Like Restricted Stock Grants http://www.mystockoptions.com/articles/index.cfm/ObjectID/B1750B46-204C-477F-A2F82EE536C70D9A Your company is no longer granting you stock options, or at least fewer than before. Instead, you're receiving restricted stock or restricted stock units. While these grants don't carry the same upside as stock options, they have benefits you will surely appreciate once you understand the special features of these grants.Richard Friedman Decisions At Vesting With Restricted Stock (Part 2): Hold Or Fold? http://www.mystockoptions.com/articles/index.cfm/ObjectID/3C81D98D-16D3-45C7-82916B8D6168B638 Vesting is another crucial time for making decisions about your restricted stock. Decisions include what tax-withholding method to use, whether you should hold or sell the stock, and what account to keep the shares or cash in after vesting.Tom Davison Fundamentals Of Employee Stock Purchase Plans (Part 1): Basic Structure And Terms 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 Employee Stock Purchase Plans & Your Financial Planning (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/F381C069-EA0E-45BB-853AC3117887115E Employee stock purchase plans (ESPPs) are popular and prevalent at most public companies. However, the structure of these plans is changing. These modifications may affect your decision to participate in your ESPP and its place in your financial planning.Bruce Brumberg Stock Option Fundamentals (Part 5): Incentive Stock Option Taxation & Alternative Minimum Tax http://www.mystockoptions.com/articles/index.cfm/ObjectID/D014F6E5-72B2-48A6-994BB222445373FE You're ready to delve deeper into how and when different taxes apply to ISOs, including the AMT. You need to consider taxes at exercise and at sale to put together a strategy that maximizes the value of your options.Marilyn Renninger The ISO Tax Trap And The AMT Credit Myth: What To Do Before Exercise And At Year-End 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 (ISOs). While you may have lower capital gains rates when you hold the shares long enough after exercise, it's harder to avoid the risks of the alternative minimum tax (AMT) and to fully recoup any AMT credit.Alan Ungar Retirement Planning With Your Stock Options And Other Stock Compensation (Part 1: Pre-Retirement Planning) http://www.mystockoptions.com/articles/index.cfm/ObjectID/47878A79-AF88-4502-A8B536A069A95DD6 Your stock options and restricted stock are important for your retirement planning. Understand the related issues and explore strategies, whether you are planning for retirement now, are nearing retirement, or have retired already.Carol Cantrell I'm Getting Divorced: What Happens To My Stock Options? (Part 1) 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 How To Use Rule 10b5-1 Trading Plans To Sell Company Stock (Part 1) http://www.mystockoptions.com/articles/index.cfm/ObjectID/E9A2332B-D74B-4CCE-8C13F705E5191D33 Insider trading restrictions can cause constant headaches for executives and their companies. Rule 10b5-1 trading plans are an ideal solution when they are properly drafted and implemented.Darryl Rains and Sunil Kulkarni Hedging Your Employee Stock Options (Part 1) 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 My Company's Being Acquired: What Happens To My Stock Options? (Part 2) 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