have a question about taxation on stock options - who to ask?

First time dealing with a combination cash and equity bonus and I'm not sure about the tax implications of the equity portion. I've discussed with my regular accountant, but I'd like a second opinion from an accountant well versed in dealing with the situation.

Any recommendations would be appreciated -- any ideas who to talk to?

beecee said:

First time dealing with a combination cash and equity bonus and I'm not sure about the tax implications of the equity portion. I've discussed with my regular accountant, but I'd like a second opinion from an accountant well versed in dealing with the situation.

Any recommendations would be appreciated -- any ideas who to talk to?

"who to ask?"  -  I don't know.

This may be of interest:

http://web.mit.edu/humor/Incoming/ships.in.the.night

Particularly for those moving in the world of combination bonuses.

Equity or options?

You can post a generic question here and we can try to help.  Are they options or restricted stock?  Have they vested?

Wouldn't it be the value of the options when you received them, contrasted with when you cash in (exercise) the option?

sportsnut said:

You can post a generic question here and we can try to help.  Are they options or restricted stock?  Have they vested?

this.

If it's RSUs, until the shares vest, you owe no tax. And when they do vest, you can cash in a portion of the shares to put aside to settle your tax liability.

When restricted options vest, they are treated as ordinary income, IIRC. Upon vesting my then-employer automagically sold enough of the shares to cover the tax liability.

Nelson Couto, CPA, west orange

Www.coutodefranco.com