Consider Your Options
Consider Your Options is our plain language guide to compensation in stock and options. It highlights the opportunities — and pitfalls — in handling these items, providing complete, authoritative information on everything from the section 83b election to the dreaded alternative minimum tax (AMT).
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Who it’s for
This book is intended for people who may be new to investing or know little about taxes. It provides the clearest possible explanations of the relevant rules and strategies. It may also be suitable as an introductory book for professionals, and for several years has been required reading for those undertaking the course of study offered by the Certified Equity Professional Institute. Financial advisors and other professionals offering advice to recipients of stock options may wish to consider our other book on this subject, Equity Compensation Strategies.
What it covers
Consider Your Options explains tax rules and strategies that will help you get the most from the stock and options you earn as an employee or executive.
Part I: Laying the Foundation
An overview of the subject; working with (or without) an advisor; introductory information about stock prices and investment risk.
Part II: Restricted Stock
Terminology, tax rules, and planning considerations for restricted stock awards.
Part III: Options in General
Terminology and basic economics of stock options; determining when an option is ripe for harvesting.
Part IV: Nonqualified Stock Options
Tax rules for these kinds of options; examination of a strategy to secure profits in the form of capital gain.
Part V: Incentive Stock Options and AMT
Rules for ISOs under both regular income tax and alternative minimum tax; a review of strategies, both good and bad, often recommended for this type of option.
Part VI: Using Stock to Exercise Options
Special tax rules that apply in connection with this method of exercising nonqualified stock options or ISOs.
Part VII: Vesting
Details on the rules for vesting, including the section 83b election and “early exercise” stock option plans.
Part VIII: Employee Stock Purchase Plans
An explanation of how these plans work, and the applicable tax rules and strategies.
Part IX: Other Topics
Various other topics, including estimated tax payments and estate planning issues.
About this edition
The 2014 edition is the eighth edition of this book, reflecting legal authorities as of October 31, 2013. Changes from the previous edition include updates for changes in tax rates, discussion of the new surtax on net investment income and how it affects option strategies, and a new chapter on income tax reporting for all types of equity compensation.
Consider Your Options: Get the most from your equity compensation
by Kaye A. Thomas
Fairmark Press Inc.
2014 edition published November 2013
Trade paperback, 296 pages
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