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 […]
Non Qualified Stock Options
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 […]
10 Things You Need to Know About Non-Qualified Stock Options
Non-qualified stock options (NSOs) are a common compensation feature provided to employees as part of a compensation package. If you have access to these perks, they give you the opportunity to potentially profit from the rising value of the company’s stock. If you find yourself on the receiving end of […]
The Math Behind a Cashless Exercise of Non-Qualified Stock Options
When the time comes to exercise your non-qualified stock options, you may find yourself asking about the process, the cost, and how it actually happens. This may lead you to ask whether to do a cash exercise or a cashless exercise. Many people default into a cashless exercise for a […]
Exploring Tax Rules for Non-Qualified Stock Options
The income tax rules for an exercise of non-qualified stock options are relatively straightforward. You don’t owe taxes when you are granted non-qualified stock options. You don’t owe when your non-qualified stock options vest, either. This no tax timeframe allows you to defer income tax while potentially creating considerable wealth […]
Do You Have Non-Qualified Stock Options? Here’s What You Need To Know
Non-qualified stock options are unique in that they retain tax characteristics similar to restricted stock and employee control similar to incentive stock. One might say that they fall right in the middle of these two. From a tax standpoint, gains are subject to ordinary income tax rates. In terms of […]
