An employee stock purchase plan, or ESPP, can provide employees of a company a vehicle through which to purchase that company’s stock. This is usually done through automated payroll deductions, which makes the system convenient, and employers may offer added benefits like discounts on the market price of the shares […]
9 Year-End Planning Tips for Your Equity Compensation
You might not give much thought to the equity compensation you receive throughout the year (until you’re forced to take action with it). But even if you do have a long-term plan in mind, it’s smart to pause periodically and review the overall strategy. The end of the year is […]
Planning for Incentive Stock Options: How Exercising ISOs Could Impact Your Cash Flow
Before you do anything with your incentive stock options, you need to get clear on how exercising those ISOs could affect your assets and what will it cost you in terms of real money. You need to know the cost of exercising your options, for example, or what you might […]
What to Do When Your Restricted Stock Units Vest
Restricted stock units (RSUs) might seem relatively easy to manage once they vest, especially when compared to the potential complexity of vested non-qualified and incentive stock options. RSUs look straightforward because your options can seem limited, meaning you have less decisions to make. But the truth is, you may have […]
Understanding the 83(b) Election for Non-Qualified Stock Options
If you have non-qualified stock options, you’ve likely spent time researching when and how you’ll face taxes for them. As a general rule, you will be subject to ordinary income tax on the profit you make when you exercise non-qualified options. Being taxed when you exercise non-qualified stock options, or […]
What You Should Know About the Alternative Minimum Tax
The alternative minimum tax (AMT) acts as a sort of parallel tax system to the regular federal income tax system. For taxpayers, this means they need to calculate their income twice: once under the regular tax rules and a second time under AMT. After running this calculation, taxpayers then pay […]
