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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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4
votes
2answers
155 views

How to flip my options?

I was recently let go from my company due to a reduction in force, and I have received a letter saying I have vested options available for exercising. Although I would like to, I cannot afford to ...
7
votes
4answers
335 views

Job Offer - Explain Stock Options [US]

I just got a job offer that I intend to accept, and part of the benefits explanation says, Pending formal approval of the [Company Name Redacted] Board of Directors’ compensation committee, your ...
5
votes
2answers
944 views

Deciding between Employee Stock Option and Restricted Stock

The Company I am currently working with, as part of a reward program awarded me 500 stock options and given me an option to choose them either as Employee Stock Option Restricted Stock Or as a ...
1
vote
1answer
718 views

Standardized loan options to purchase employee stock options

I am curious whether there are standardized loans (kind of like margin loans) that are issued to purchase employee stock options. E.g. let's say I have little or no cash available but have 10,000 ...
2
votes
2answers
628 views

Is there a simple strategy of selling stock over a period of time?

I've often read a simple strategy of buying stocks or funds over a period of time: spread it over time with fixed amount of dollar in each period. Since the price fluctuates, fixed dollar amount means ...
1
vote
3answers
2k views

How does 83b election work when paying fair market value at time of grant?

After purchasing restricted stock in a company, so that the amount paid for the stock is exactly equal to its fair market value at the time of purchase, can you file an 83b election at that time? If ...
4
votes
1answer
2k views

Taxes when exercising stock options in a privately held startup

Let's say I currently have the right to exercise some employee stock options (ISO) at a certain strike price. I have add these options for more than a year. I read that the AMT tax applies on the ...
18
votes
2answers
3k views

As an employee, when is it inappropriate to request to see your young/startup company's financial statements?

If you work for a young company, equity in the form of restricted stock or options is often a form of compensation and a way to keep you aligned with the company's goals. But as a new employee you ...
2
votes
1answer
2k views

Does the section 1202 qualified small business stock reduce New York, Illinois, or California taxable income?

Say I sold a small amount of stock that qualifies for section 1202. Does this reduce my New York taxable income, or just the federal capital gains amount?
2
votes
2answers
421 views

What ways can an employee keep the upside of stock options after leaving?

Suppose that you work at some private company and that company offers some stock options to you as part of employment. For the sake of discussion, suppose they offer 100 000 options at $0.50 an option,...
1
vote
1answer
233 views

Had employee options in a company that has been sold to another foreign company. What happens?

One of my parents had employee options in a company that was based in the US. Recently however, that US company had been sold off to a German company (now based in Germany). Question is, what ...
2
votes
1answer
1k views

When should I exercise my startup stock options? How would it be taxed?

Let's say I'm an employee at a startup where I own fully vested stock options. Scenario 1 I have not exercised my stock options and my startup was bought. Do I still get to exercise my options? The ...
2
votes
1answer
222 views

AMT stock option scenario

So I have some ISO stock options (yeah) and three kids in college (boo) so I'm trying figure out the best tax strategy. I was hoping someone help me through the following scenario Strike Price: $10, ...
4
votes
3answers
3k views

How a company can afford to give away so many shares as part of its ESOP

As part of an employee share ownership plan (ESOP), the employee(s) get a certain # of shares held in their name. Every month, the employer also matches the contribution and let us assume the employee ...
1
vote
1answer
235 views

Would an ESOP issue physical shares or stock options (call options) to participating employees?

The ESOP (Employee Stock Options Plan) has the word 'options' in it. Is it the same "options" as in "futures and options', i.e are there physical company shares held under the ESOP in an employee's ...
3
votes
1answer
2k views

Can a self-directed IRA hold non-qualified stock options (NSO) with a vesting period, without being considered self-dealing?

I work for a startup company. They are about to go through their FMV evaluation and funding round, at which point I will be granted my options. I talked to them and said I would like the ability to ...
5
votes
2answers
363 views

What to consider before buying (exercising) a family member's private company employee stock options, about to expire?

My brother-in-law is leaving a private tech company. He has $100,000 in stock options (fully vested) which he must either purchase, or abandon completely upon his exit. This is not a startup — ...
2
votes
3answers
2k views

Should I invest in the pre-IPO company stock offered by my employer?

Should I invest money in the pre-IPO stocks soon to be offered by the company that I work for? Is it wise to do this? What should I be thinking about? What are the risks? I'm one of the first ...
1
vote
1answer
78 views

When to convert employee shares in an RRSP into cash, even if there is a penalty?

An employee has opted to invest in his/her company's share purchase plan with following criteria: Shares are held in an RRSP account. If emplyee contributes x% of her base salary from every ...
4
votes
2answers
195 views

Is it a wise decision to sell my ESPP stock based on this situation?

My wife lost her job in the middle of 2013 and has been unemployed since then. I have about $7000 of company stock. I am planning to pay my car off using that money but I am not sure if this is the ...
3
votes
1answer
228 views

When offered options as part of a package from a 2 year old startup, how is the strike price derived?

When startups hire new senior people I understand that it is common practice to offer options, often over a period of 4 years. However, the actual value of these options will depend highly on the ...
2
votes
1answer
278 views

Exercise ISO or NSO in solo 401k?

I have a solo 401k. My employer does not offer one. What is the correct way to exercise employee stock options with capital from the 401k to make the resulting stock an asset of the 401k? Ideally ...
2
votes
1answer
161 views

Company gets rid of bonus structure and replaces it with cash and options. What gives?

Here is how it went down and what they're offering me. What should I make of it/ask them about? 1) They are changing the bonus structure to allow me to get the payout IF we make a certain revenue ...
2
votes
2answers
1k views

If I exercise underwater ISOs, can I claim a loss?

From what I understand, if I exercise in-the-money ISOs, I'll be taxed on the supposed gains, even if the stock isn't tradeable (because, for example, it's stock in a privately-held company). Does ...
5
votes
1answer
213 views

Employee stock option plan with undefined vesting?

As an employee, I have received stock options from my company. However, about vesting, it says only that the board determines it. There is no further info, no vesting period is stated, no further ...
15
votes
5answers
2k views

Confused about employee stock options: How do I afford these?

I'm confused about stock options. The numbers in the following story are fictional because I'm keeping the actual offer confidential. This is an American private company with a promising future: ...
2
votes
1answer
237 views

Exercising stock options in a private company when the strike price is higher than current FMV

An employee leaving our Private Subsidiary wants to exercise his stock options, despite his strike price being higher than the current valuation ($1.00 vs $0.84). Was wondering what the tax ...
4
votes
1answer
729 views

How do I treat the income from an ESPP I sold now that I am a non-resident alien?

I worked in the US in 2009 and was granted an Employee Stock Purchase Plan (ESPP), which I exercised. Then later I left the US and sold the stock, which is a qualified disposition. Now I am going to ...
6
votes
2answers
805 views

How can I estimate the value of private stock behind employee stock options?

I'm considering an offer with generous options. I have pretty high risk tolerance, so I'm just trying to estimate the expected value of the options. To the extent possible, I want to base this on the ...
3
votes
3answers
18k views

How do I enter Canadian tax info from US form 1042-S and record captial gains from cashing in stock options?

I am assuming these issues are related. I am working in Canada for a US company. I buy stock options every quarter. In 2011 I cashed in some stock options and received the cash. How do I enter the ...
8
votes
1answer
89 views

Capital losses on early-purchased stock?

If I exercise an early purchase clause on employee incentive stock options to go ahead and purchase the stock and the company later goes bust, can I take capital losses against that stock?
8
votes
1answer
282 views

Can I apply prior years' capital losses against my employee stock option exercise?

I'm Canadian, and I executed a "same-day-buy-and-sell" on options granted to me by my employer. My T4 slip has the appropriate taxable benefit called out, but my question is, can I apply my previous ...
4
votes
1answer
1k views

When Employees are “Granted” Stock Options, is the Company encouraging Long-Term investments from them?

I'm not exactly sure I understand the "why" behind a Company reasoning for offering "options" to their employees to invest in itself. I've found it is very unlikely of the employees to exercise for a ...
4
votes
5answers
4k views

ESPP advantages and disadvantages

My US employer offers stocks for employees with a certain discount up to a max limit per year. What are the advantages and disadvantages of buying these stocks? Later edit: The employer is Microsoft
4
votes
1answer
147 views

Buying non-qualified employee stock options that are going to expire?

I have NQ stock options from my employer that have to be exercised in the next few months before they expire. I would like to hang on to them as I have faith in the stock itself. What are my options? ...
6
votes
1answer
2k views

Can capital gains from employee stock options be transfered to a TFSA to avoid taxes?

In a scenario where, for example: An employee exercised a "same-day-buy-and-sell" operation on his employee stock options. He ends up making a profit / gain of $10K. He already has a yearly salary of ...
1
vote
1answer
276 views

Why a company offers share purchase plan under RRSP but not TFSA?

My company is offering share purchase plans under a tax free umbrella. What this means is that you can use your rrsp limit to contribute to thsi plan and gains will not be taxed unless withdrawn. My ...
3
votes
2answers
323 views

ESPP taxes after relocating from Europe to the United States?

I was working for company X(Europe) where I was enrolled in ESPP (Employee Stock Purchase Program). After a few months when I sold the stock I received an offer from the X(US) "the mother company" to ...
10
votes
3answers
21k views

Do the tax consequences make it worth it for me to hold ESPP stock?

Disclaimer — I've read What should I do with the stock from my Employee Stock Purchase Plan? and the answers seem to be both slightly wrong (from what I know) and contradictory, which is why I ...
5
votes
1answer
16k views

Can I transfer my Employee Stock Purchase Plan assets to a different broker?

I'm considering consolidating my assets with a single broker; is there any way I can transfer the shares I own to another manager? The trick is that each ESP purchase has a 2 year period before I ...
5
votes
2answers
127 views

Can I take money from my employee stock and put it towards another stock?

Can I take money from my employee stock and put it towards another stock?
20
votes
3answers
88k views

What typically happens to unvested stock during an acquisition?

I work for a publicly traded company that was acquired by another publicly traded company. I also own shares of "restricted stock units" for my company. All of my shares are scheduled to vest far ...
12
votes
5answers
2k views

What should I do with the stock from my Employee Stock Purchase Plan?

I've got an employee stock purchase plan program. The details are a little tricksy, but I basically get to buy about 2500 shares of company stock at something like $2.33/share... and the stock has ...