Private Company Stock Options: Things to Know Now
In any private tech company, there are typically five types of stock options available: QSBS (qualified small business stock) LTCG (long-term capital gains) Shares Unexercised ISO (incentive stock options) Unexercised NQSO (non qualified stock options) RSU (restricted stock units) And if your eyes glazed over looking at that list, I don’t blame you. Only nerdy […]
ISO AMT Tax: What You Need to Know
ISO AMT tax is a real doozy. In fact, a lot of people are still confused about what it all means. We’re seasoned with working with tech employees who are frequently affected by things like ISO AMT tax, so we wanted to help you understand how these tax laws will affect you if you choose […]
When to Sell Stock Options: Learn Stock Option Type & Time to Sell
It feels good when you’ve got different stock options, RSU, and ESPP to work with to grow your wealth. What doesn’t feel good is when you don’t know when to sell stock options, or what moves to make based on their different types. Like, should I sell RSU or ESPP first? When to sell stock […]
How Do Stock Appreciation Rights Work?
Companies are getting more and more competitive (and creative) with their compensation packages to find, attract, and keep skilled professionals. And with that creativity of new forms of compensation, SARs, or stock appreciation rights, are starting to gain steam. How stock appreciation rights work is interesting: sort of like a morphing of nonqualified stock options […]
ISO Cashless Exercise Now vs. Wait & Exercise Later
Imagine a typical job searcher in Silicon Valley: She took a job at a tech company, and part of her compensation package was ISO (incentive stock options), but she assumed they wouldn’t be worth anything, so she didn’t bother with them. But then, suddenly, the company improved and an IPO was on the horizon. She […]
Exercise and Sell or Exercise and Hold – Stock Options Case Study
So your company just announced a tender offer or IPO. The rubber is about to meet the road, and you’ve got some decisions to make about what you’re going to do with your incentive stock options (ISO).You finally have the chance to cash in on your stock options, and if you’ve got the extra cash […]
ISO AMT and Cost Basis: What You Need to Know
If I had $1 for every time I had a conversation with smart-but-frazzled startup employees trying to understand the financial jargon around their ISO AMT, I could, well…. buy my wife and I a really nice dinner. 🥗 💑 🥂 Yeah, I know it’s not exactly millionaire lifestyle from that $1 per conversation, but it […]
How Does the AMT Credit Carryforward Work with ISO?
Guys, the Alternative Minimum Tax (AMT) & all. the. things. about it are confusing as heck. Like, that’s just how it is. I’m not even going to pretend with you right now. And unfortunately, it doesn’t look like the IRS is going to simplify the AMT credit carryforward with ISO anytime soon… so we’re doing our […]
How Do RSU Work: The Beginner’s Guide (Start Here)
Hands down, I find myself answering more questions about RSU (restricted stock units) than any other type of stock option. And it’s understandable: The way RSU work (not only with company vesting schedules but also with tax laws) is by far one of the most confusing financial concepts for startup or tech employees. But don’t […]