Questions tagged [employee-stock-options]
ownership of company given to employee, generally in start-ups instead of giving cash rewards. Also used by listed organisations as a mechanism for employee retentionship
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Does AMT Credit apply only to capital gains?
I'm getting very contradictory answers when it comes to when can I claim AMT credit. Is not clear whether the credit can be applied to any income/tax, or it has to be applied only to capital gains, or ...
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Tax Implications of exercising both NSOs and ISOs
My partner and I are trying to figure out the correct tax strategy to exercise the largest amount of ISOs without triggering Alternative Minimum Tax (AMT).
Situation
Filing Status: Single
Strike ...
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Is it considered insider trading selling options on company gifted shares of stock?
If you receive stock as apart of your company compensation is it insider trading to sell covered calls on your stock? What if your spouse who literally doesn't know anything about the company is in ...
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Assuming a bullish stock, any advantage in using LT RSUs to fund exercise cost of ISOs?
Example
Present Information:
Example Dummy Stock: GGG | Stock Price @ $10
Super bullish and so assume the value of the stock price will go up.
ISOs: 10,000 with SP @ $5.00 (All vested, just not ...
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Calculating preferred share conversions to common using weighted average
I am trying to make an informed decision as to whether or not to invest in a private startup company by exercising vested options from a grant I obtained while working for the company as an employee.
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Employee stock options - where do the shares come from?
Employee stock options are commonly offered by employers as part of compensation.
I understand that they basically mean "You (employee) can buy X shares at time Y for a price of P." If the ...
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Under what conditions can a stock grant agreement be issued?
Several years ago, I did work for a company (Delaware corporation). In return, I was issued some stock in exchange for handing over my IP rights.
Here's the relevant excerpt from the contract I signed:...
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Recouping AMT paid from exercising ISO Stock Options when sold
Three years ago (2020), I exercised a sizable amount of ISO Stock Options, which resulted in AMT in that year. Let's say the strike price was $50 and the FMV was $100.
Since then, the company went ...
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Acquisition/Share holding question
I am trying to figure out my share calculations. I have vested 10,000 shares in my company and they are a private tech company that seems to be on track to be acquired in the next six months. Do I get ...
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Is there likely to be a market for private company incentive equity if it's assessed value is more than it's worth?
Let's say I have some stock options in my company that I can exercise for $x. And the company's value has been assessed by some external entity to revalue the stock to $x+y. The company is still ...
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Where do I report ISO income with a subsequent disqualifying disposition, and what taxes are due on it?
Here's what happened in 2022 in the United States. I have changed numbers a little bit for simplicity and privacy.
I had an incentive stock option (ISO) grant that I exercised using a net exercise ...
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If I buy and hold my ISOs pre-IPO, what access do I have to shareholder/board meetings?
Let's say I have some vested incentive stock options with the startup that I work at (company and I are both in the USA). The company has not gone public at this point in time.
If I buy and hold my ...
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(Canada) How does a trust help with tax burden?
My company is offering me share options. I'm trying to understand what the tax implications are.
My understanding is that as soon as I convert the options into shares, I must pay tax because the ...
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Emc2 lost shares
20 years ago I worked for IT company called EMC2, today is part of Dell Technology. I received shares from EMC but forgot. Also forgot account number at Morgan Stanley.
How can I find out what I still ...
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In what tax year selling my stock options happened?
My employer, a private company, paid me with stock options. In 2021, the company bought back stock options from employees, so I sold some to them.
We signed the "Letter of transmittal" in ...
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Are there any taxes due when exercising ISOs?
I had some ISOs from a US-based startup. I held these for a few years already if that matters. I wanted to exercise 900 shares at $3.3, for some reason the total I need to pay is $16.5K. Main reason ...
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When does tax have to paid with EMI share options?
I have vested share options in a small company because I joined when it was an early stage start up. The options are in an EMI (Employee Management Incentive) scheme. The company is not planning to ...
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Could very old employee stock options still be accessible and viable?
When I was much younger, I worked for a local dot-com startup. As part of our bonuses we received 'stock options' a few times.
Given my state of naivety at the time, I had no idea what they were or ...
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Choice between equity and stock options
I am part of a tech startup and have just been brought on as the technical co-founder. My compensation is 100% equity for now, but I will likely be hired with a salary in the near future.
The problem ...
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Writing off exercised options from defunct startup
4 years ago (2019) I exercised some vested stock options of the startup I worked for. Last year this startup closed shop, and I learned about it now.
Is there any way I can claim as losses for 2022 ...
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Tax treatment of large stock payment
I own stock in a previous employer that has just been acquired. I expect to receive a one-time lump sum payment of about one month’s salary, which I expect will be taxed as capital gains.
Every year I ...
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Is there any difference, tax-wise, between a disqualifying disposition of incentive stock options and non-qualified stock options?
Title pretty much says it all. I'm curious in cases where the strike price is so high that the only practical choice is a cashless sale (leading to a disqualifying disposition), if it makes a ...
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Are employee stock options worthless in a highly valuable company that never "exits"?
What happens to employee stock options and stocks in those rare cases where a start-up is wildly profitable -- but the founders never "exit"? That is, it never goes public or is acquired.
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What are my rights as a small investor in private equity, and what can I do about the company not responding to me?
I invested a small amount of money into my previous employer's employee stock options program. When I left the company a few years ago, I decided to exercise some options that had already vested.
The ...
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Correctly file income from NSOs as non-resident citizen
I'm a dual citizen (Belgium - USA) and have lived / worked in Belgium always.
Because I pay taxes in Belgium, I've been using the Foreign Earned Income Exclusion (FEIE) to offset my wages and paying $...
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How to prevent a wash sale from ESPP share purchases and RSU vesting
Earlier this year I exercised (and held) ISOs my company offered. At the time, the FMV was fairly high but has since dropped. I am looking at selling my previously exercised shares and repurchasing ...
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Which of several stock option grants to exercise and sell?
I have a series of annual employee stock option grants that were struck at varying prices over the course of several years, all of which have now vested. Some options are at this point worth a decent ...
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Does selling gainers and loser lots of stock trigger Wash Sale?
My employers gives me stock compensation every month. There is no day in the year I can sell my losing lots of stock without triggering the wash sale rule.
Can I sell winnings and losing lots of ...
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Can a wash sale exist across calendar years?
If the sale and subsequent repurchase of a stock occurs in two separate calendar years, but within 30 days of each other, is that still considered a wash sale for tax purposes of the sale in the first ...
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Should I file a W-8 BEN for RSUs vesting while I'm in the US?
I just moved from Ireland to the US, mid-July 2022. I will not be considered a "US Person" because I'm not a US citizen and I will be staying less than 182 days in the US. I have some RSU ...
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How much are my shares worth in the startup I work for?
So I joined a startup last year. They gave me 50,000 options (ISO) with the exercise price of $0.4 per share. Currently I do not how many shares the company has in total, but in the print of the ...
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Stock option impact when a company splits into two companies
What happens to an unvested stock option held in a company, that then splits into two new companies - are the options replicated?
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Should I exercise my stock options (NSO's) before or after moving from Canada to U.S.?
I'm planning on changing my residency in a coming year from Canada to U.S. (Canadian citizen). I have NSO's of a private US corporation and have the option to exercise my vested options. I'm going to ...
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Does California double-tax the portion of incentive stock options which are subject to AMT?
Consider the following scenario:
In 2020, Alice vests and exercises ISOs at $1 strike price, $3 FMV. Under California AMT, she generates $2/share of gain. Alice exercises enough shares to owe a ...
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When my stock options fully vest, is that the equivalent of a pay cut?
Background
I am approaching the end of my vesting term of 4 years. The vesting plan follows a typical 4 year term, with 1/48th of the total options vesting every month (after the initial year-long ...
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German employee with stock options for a NASDAQ-listed company: eligible for Tax Treaty Benefits?
I am a German employee (German citizenship, living and working in Germany, no connections to the US) of a NASDAQ-listed company and have received stock options (more exactly RSUs, Restricted Stock ...
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Is there a future tax benefit to selling RSUs in order to exercise-and-hold the stock options?
I have RSUs and in-the-money stock options granted by my company, both vested. I've held the RSUs for over a year, so I understand that when selling, I would pay long-term capital gains tax on the ...
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'iss' function in "FinCal" package in 'R'
Following is the 'iss' function in "FinCal" package in 'R'.
iss: calculate the net increase in common shares from the potential exercise of stock options or warrants.
Description:
calculate ...
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Why would someone argue that stock options are a better form of compensation?
I'm reading How Google Works by Jonathan Rosenberg & Eric Schmidt. In the Talent - Hiring is the most important thing you do chapter, the authors briefly pause the management topics to give career ...
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European citizen exercising USA company stock options
My situation is pretty simple, I am a European citizen working for a US based company. I would like to exercise my vested stock options and hold the stock long term since both the exercise price and ...
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Exercising options and holding on the stock
I have a certain amount of stock options (NSO) that I can acquire at the startup I work for. For personal reasons, I will have to eventually leave the company. I do believe in the company, and the ...
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If you are doing an 83(b) early exercise, would there be any tax difference between incentive stock options and non-qualified stock options?
Let's say one is being given employee stock options with a relatively low exercise price, such that it makes sense to do an 83(b) early exercise. In that case, would it matter if they are incentive ...
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QSBS for restricted stock options
The below applies to a US company
I have started at a company where I have received stock that has a 1 year cliff and a 4 year vesting schedule. I earlier exercised my stock and filled out a 83b form. ...
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Is there any reason to exercise company stock options with no listed value?
I have vested options that are relatively cheap to buy, but there is no indication that there is a traded underlying security and there is no value listed anywhere on Carta. Since the exercise price ...
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Will stock options continue to vest if an employee goes into State Disability Insurance (SDI)?
If an employee in a publicly traded company needs to go on SDI (to get treatment) will the employee continue to vest options (ISOs, RSUs)? Is SDI like a sabbatical from a company's perspective where ...
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Salary after all restricted stock units have been vested
I am a German and got a job offer from a US company. This is the first time a company offers me a salary and restricted stock units (RSU). German companies usually do not grant RSU for non-senior ...
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What financial due diligence should I do when joining a tech startup?
A large portion of compensation from startups is in the form of equity or stock options (often at the cost of lower salary). It's also not good on your resume (at least early on in your career) to be ...
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Can I make use of my wife's Capital Gains Tax Allowance for gains under an EMI Share Option scheme?
My employer has granted me a number of share options under an EMI scheme. They also partnered with their brokers to allow us to exercise these options without needing to put up-front capital in to ...
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Can a company not pay out on ESPP enrollment?
My girlfriend enrolled in her company’s ESPP program beginning Jan 1, 2021. They have been withholding 10% of her gross pay as expected. Now that the July 1 payout has arrived with nothing seen by her ...
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What does this statement mean in my ESOP?
I am in senior marketing position at my startup and I have been recently granted ESOP.
My contract has this written in it:
55,000 options (Shareholder Interests, Options), which represents an ...
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