Pre-IPO Guide for Employees: 5 Steps for RSU, Stock Options, Tax
Surprise! Your company just announced an IPO. Congrats! You know in theory you’re about to come into a lot of money… but how do you get your hands on it? Will you have to hand 50% of it over to the IRS in taxes? Or can you finally buy the house you’ve been wanting for […]
What Is a CP2000 IRS Notice? Plus, Response Letter Sample
A random, unexpected letter from the IRS is never something you want to receive — especially when that letter is a CP2000 notice, informing you that you owe them money. (Money beyond what you’ve already paid in taxes after filing your return and paying the bill in full.) The way the IRS communicates often makes […]
QSBS Exemption Requirements: 100% Exclusion of Capital Gains
What if I told you that you could receive $10 million dollars and not pay any taxes on it? You’d be interested, heck we all would be. Fortunately for all of us, that wasn’t a hypothetical question. It’s very much a real thing. The IRS offers the qualified small business stock (QSBS) exemption. This exemption […]
Alternative Minimum Tax ISO: How Does It Work
Alternative minimum tax (AMT) on Incentive Stock Options, or ISO, is so confusing. You don’t receive any cash when you exercise ISO and pay ordinary income tax when you exercise your options. But you could have to pay the alternative minimum tax. Here is what you need to know now. Alternative Minimum Tax on ISO […]
Small Business Capital Gains Exemption – Sell QSBS, Pay Zero in Capital Gains Tax
What if I told you there was a way to pay zero dollars in capital gains tax if you sold qualified small business stock? It might sound crazy, but there’s a little-known provision in the Internal Revenue Code that you could potentially use as a small business capital gains exemption. That provision is IRC Section […]
Angel and Startup Investment Fund K1 for Investors
In the world of startups, “angel investing” has become a pretty sexy term… for a number of reasons. One, when a startup gets an angel investor to back their business, it usually means the founders can eat something other than rice and pinto beans, and the company has a much higher chance of success. Two, […]
5 Lessons Learned from Missing Cost Basis
How do you calculate missing cost basis? What lessons can you learn? What might you want to do differently in the future? This post will answer those questions and more. What is cost basis? Cost basis is the total price you paid to buy an investment. You calculate your capital gain or loss by subtracting […]
QSBS Stacking, Packing, and Rollovers: Choose the right fit for you
If you were around when a corporation was still small but it’s become large (like as a founder or one of the first employees), you may have stock that qualifies for the Section 1202 exemption… which basically means you don’t pay capital gain taxes upon the sale of those shares. These shares are known as […]
How are Stock Appreciation Rights Taxed?
In the past, simply having RSUs or an ESPP might have made you all starry-eyed for an employer, but in many circles, those are becoming par for the course. So… what are more innovative companies doing? SARs. Stock appreciation rights. The key now is to understand what SARs are and how stock appreciation rights are […]