How to Handle Stock Options and Other Equity Compensation

This free online guide explains how to handle the most popular forms of equity compensation, including restricted stock, nonqualified options, incentive stock options, and employee stock purchase plans. Fairmark also publishes two books on the subject:

• Consider Your Options is for the general reader (including professional advisors who deal with these topics only occasionally)
• Equity Compensation Strategies is for professional advisors who deal with these topics regularly

Here’s a list of pages available in this free online guide.

• Laying the Foundation
  • Equity Compensation 101
  • When Stock is Vested
  • Fair Market Value of Stock
  • Withholding on Stock Compensation
• Restricted Stock
  • Grants or Awards of Stock
  • Buying Employer Stock
  • Section 83b Election
• Nonqualified Options
  • Nonqualified Options in General
  • Nonqualified Stock Options Before Exercise
  • Exercising Nonqualified Stock Options
  • Cashless Exercise of Nonqualified Options
  • Nonqualified Option Exercise Using Stock
  • Sale of Stock from Nonqualified Options
  • Nonqualified Options and Capital Gain
• Incentive Stock Options
  • Incentive Stock Options in General
  • Incentive Stock Options Before Exercise
  • Exercising ISOs
  • Cashless Exercise of ISOs
  • ISO Exercise Using Stock
  • Early Disposition of ISO Stock
  • Sale of Mature ISO Stock
  • $100,000 Limit for ISOs
  • $100,000 Limit and Early Exercise
  • Refundable AMT Credit
• Employee Stock Purchase Plans
  • Overview of Employee Stock Purchase Plans (ESPPs)
  • Buying Shares Through an Employee Stock Purchase Plan (ESPP)
  • Dispositions of ESPP Stock
  • Tax Reporting for Disqualifying Dispositions of ESPP Shares
  • Tax Reporting for Qualifying Dispositions of ESPP Shares
  • Flipping ESPP Shares
• Tax Reporting for Equity Compensation
  • The Sorry State of IRS Guidance on Nonqualified Options
  • Reporting Sales of Nonqualified Option Stock