The choice of when to exercise your incentive stock options can be a difficult one, with serious implications for financial planning and taxes. When your company is still pre-IPO, that opens up an entirely separate set of concerns that you may need to be aware of. The issues associated with […]
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7 Things You Should Know About Incentive Stock Options
Incentive stock options (ISOs) are a form of compensation distributed by a company to their employees. Typically, companies use ISOs as a vehicle to retain top employees, reward specific milestones or successes or as an incentive when hiring new employees. ISOs can be a lucrative long-term compensation benefit, particularly if […]
7 Things to Know About Your Employee Stock Purchase Plan
An employee stock purchase plan is a compensation tool that may allow you to purchase shares of company stock through convenient payroll deductions. Employee stock purchase plans, or ESPPs, can give you the opportunity to buy company stock at a discount or at a favorable price. Through the plan, you […]
How to Use the AMT Credit Effectively in Retirement
If you have incentive stock options, you’ve likely heard of — and perhaps already paid — the alternative minimum tax. This is the tax due in the years you exercise and hold incentive stock options, or ISOs. You might also be entitled to an AMT tax credit if that’s the […]
5 Reasons Why You Might Want a Disqualifying Disposition for Your Incentive Stock Options
Want to pay less in taxes from the sale of your incentive stock options? While you can’t completely avoid taxes on a profit when you exercise and sell shares from ISOs, you can potentially earn the right to pay at long-term capital gains tax rates — which are lower than […]
How to Create a Liquidation Plan for Your Restricted Stock Units
Restricted stock units are commonly used as a compensation tool by employers who want to reward and retain key employees. If you’re on the receiving end of restricted stock units, or RSUs, you could be set to financially benefit if you meet specific conditions set by your employer. The requisite […]
