RSUs vs stock options: Key differences in an IPO
Understand the pros and cons of these equity types, their tax implications, and how to handle them. Your company’s IPO announcement can get the wheels in your head turning about what exact equity you have and how you think about these assets. I’ve noticed a lot of my clients refer to equity compensation or employee […]
Avoiding AMT on ISO stock options if your company’s stock drops
If the value of your company’s stock declined significantly after you exercised Incentive Stock Options (ISO), you may have a tax problem. Here is a strategy for avoiding AMT on ISO stock options when the stock price falls. Did you exercise and hold? A common strategy with incentive stock options is to exercise and hold […]
Everything You Need to Know About Non-Qualified Stock Options in San Francisco
Non qualified stock options (NSO) are one of three types of stock options commonly received by tech employees in San Francisco. Incentive stock options (ISO) and restricted stock units (RSU) are the others. None of the three are taxable when granted, but that’s where the similarities end. There is no decision to be made with […]
Did you hold onto your stock through the 2022 dip? Here’s how to make your money back.
How to devise a smart selling plan and see real tech IPO examples you can learn from. WIth its 2021 rise and 2022 crash, the stock market has been quite a roller coaster these past couple of years. If your employer went public around 2020, you know firsthand just how unpredictable the market can be. […]
Exercise Stock Options After Leaving: the 90-Day Limit
Maybe you’ve gotten a job elsewhere, been laid off, or are taking that long-awaited sabbatical. Unfortunately, you’ve just realized that moving on to the next thing wasn’t as easy as sending goodbye messages to your work buddies on Slack and turning in the company laptop. Unbeknownst to you, your financial life just got a lot […]
Leaving Your Company? By Hire or Fire – Here Are Your Top 3 Tax Considerations
We’re all seeing it: It feels like every other week there’s another LinkedIn announcement of one company or another downsizing its workforce, especially in the tech industry. Which means a lot of people have already had to switch their jobs this year, and because of the public nature of these layoffs, a lot more are […]
Should I Set Up a 10(b)5-1 Plan?
Is a 10(b)5-1 plan a good idea? Or will it keep you trapped in a bad stock market? What if the stock price spikes beyond what you expected? Read here.
Withholding Tax on Stock Options: The Good, The Bad, The Ugly
No one likes an unexpected tax bill. ???? No one. And yet, it happens all the time. Even to smart people. Really smart people. Especially, in our experience, smart people with stock options. Why is that? And how can you make sure you avoid getting an unexpected tax bill or a slap on the wrist […]
When does an 83(b) election make sense?
Most of our advice on this blog surrounds exercising and selling stock options after they vest. But did you know that you can (sometimes) go ahead and pay taxes on your options before they vest? You can! And it’s via a Section 83(b) election. This can be incredibly handy for saving money on future tax […]