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).
This edition. The 2023 edition of this perennial best-seller (the ninth edition) updates for developments through 2022.
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Who it’s for
This book is intended for all readers. It’s written in plain language for those who may be new to investing or know little about taxes, but covers relevant rules and strategies in enough detail to be suitable for investment advisors and tax professionals. For years it has been required reading for those undertaking the course of study offered by the Certified Equity Professional Institute. Financial advisors and other professionals who do a substantial amount of work in this area may wish to consider our other book on the 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, estate planning issues and net investment income tax.
About this edition
The 2023 edition is the tenth edition of this book, reflecting legal authorities through 2022.
Consider Your Options: Get the most from your equity compensation
by Kaye A. Thomas
2023 edition published December 2022
Trade paperback, 291 pages