Will you (or your client) owe a tax without having the cash to pay it?Studying this book could save your family from bankruptcy and avoid severe emotional distress from unexpected tax bills!
Could this happen to you?
"In January, 2000 I exercised the majority of my shares of a pre-IPO company that eventually went public. My strike price on these shares ranged from about $1 to $8, and I exercised all these shares (when the fair market value was) around $129. My intention was to hold them until at least January 2001, which would have qualified these stocks for the '2 year, 1 year' rule and would qualify for long-term capital gains."
"Well, you can probably guess what happened next. My stock is hovering at about $40. To my understanding, if I hold the stocks into next year, I would have to pay AMT on the stock at $129. Well, basically, I would have to sell all the stock just to be able to pay the AMT consequences."
This is part of a letter received by Michael Gray, CPA from a newsletter reader. Many employees who have been granted stock options discover, too late, they received a loaded gun and accidentally shot themselves.
Like having a personal consultation with an expert at a fraction of the investment.
Michael Gray invested hundreds of hours in assembling this material for you. If you received just ten hours of advice, the value would be $3,900. The investment for this book is less than the cost of one hour. More importantly, the information in this material could save you thousands, possibly millions of tax dollars and penalties!
What's included
Explanations of employee (and independent contractor) planning for Incentive Stock Options, Non-Qualified Stock Options, Employee Stock Purchase Plans, Stock Grants and Employee Stock Ownership Plans (ESOPs).
While each of these types of plans represent significant benefits for employees (non-qualified options are also available for non-employees), they also include tax traps that can result in a huge tax without the cash to pay it.
Michael Gray explains how these plans work and gives step-by-step examples illustrating the various concepts, including:
Incentive Stock Options
1. Alternative scenarios to consider when evaluating risk and tax results.
2. The "escape hatch" and when you should use it.
3. The mechanics of the alternative minimum tax and the minimum tax credit.
4. Tax results of hedging strategies.
5. Special considerations when an early exercise is allowed.
6. Special considerations for insider stock.
7. Tax consequences of backdating ISOs.
Non-Qualified Stock Options
1. What general rules apply when non-qualified stock options are exercised.
2. When is stock considered "restricted" and special elections that apply.
3. Tax consequences of a forfeiture after a Section 83(b) election.
4. How to avoid severe penalties for non-qualified deferred compensation plans.
5. Tax consequences of backdating non-qualified stock options.
Employee Stock Purchase Plans
1. A comparison of an employee stock purchase plan to incentive stock options.
2. Does the alternative minimum tax apply to ESPPs?
Stock Grants
1. When to make a Section 83(b) election for a stock grant.
2. State tax consequences when an employee moves.
ESOPs
1. Employee benefits of ESOPs.
2. Tax breaks for a sale by an existing shareholder to an ESOP.
3. Diversification elections available for employees.
4. Distribution requirements after an employee retires.
Unconditional Guarantee
You must find this the most valuable reference you have ever seen about Employee Stock Options, Stock Grants and ESOPs or simply return it to the publisher with a copy of your receipt for a no-hassle refund of your investment.
