Stock Options: Estate, Tax, and Financial Planning provides the answers to the unique features of stock options and the numerous questions over how and when they are taxed, valued, and recorded for financial statement purposes. In addition, it raises many more questions for which there are no clear answers. It is a comprehensive guide for estate, tax, and financial planners who advise clients about employee stock options, human resources personnel who are presumed to know all about these important benefits, and for insiders who must know these things. Finally, it is also for the inquisitive-minded individual who wants to maximize the value of his or her stock options in a number of different life circumstances.

This book offers a comprehensive source of up-to-date information about the major tax and financial areas affecting stock options. It gives practical advice for dealing with options through its many examples, planning notes, and forms designed for a quick understanding and easy application of the principles.

The subject areas span many professional disciplines. Therefore, most practitioners will be familiar with some, but certainly not all of the areas. Nonetheless, clients with stock options will surely encounter the majority of these issues at some time during their life. For many of these clients, stock options are their largest and most important asset. Thus, the Guide fills the educational gaps for the practitioner and his or her client where answers are to be had. And where questions remain unresolved, it offers a useful starting point in research.

Topics and Contents

Why Stock Options?

Tax Basics

Alternative Minimum Tax (AMT)

Coping With Tax Problems in a Down Market

Family Gifts of Stock Options

Family Partnerships and Other Advanced Tax Planning Strategies

Divisions Pursuant to Divorce

Bankruptcy of the Employee

Retirement Planning

Death of the Employee and Estate Administration

Insiders and Other Highly Compensated Individuals

Options Earned While Working Overseas

Section 83(B) Elections

State Income Taxation of Stock Options

Appendix State Income Taxation of Stock Options