Hot topic: Detailed guidance now available for refundable AMT credit

Compensation in
Stock and Options

Contents of our online guide to compensation in stock and options.

This part of our web site is designed to help you understand equity compensation: stock or options used to compensate employees, consultants and directors. For more extensive coverage of these topics see our book, Consider Your Options, which is available directly from us and from many booksellers. The 2007 edition is now available.

Overview Pages

The following pages provide an overview of the subject and a discussion of some global topics.

• Equity Compensation 101
• When Stock Is Vested
• Fair Market Value of Stock
• Withholding on Stock Compensation

Acquiring Stock from Employers

These pages explain the tax rules that apply when you acquire stock as compensation.

• Acquiring Stock from Employers
• Grants or Awards of Stock
• Buying Employer Stock
• Section 83b Election

Nonqualified Stock Options

This section of the guide explains the tax rules for nonqualified options (sometimes called nonstatutory options). These are options that don't meet the special requirements for incentive stock options.

• Nonqualified Stock Options
• Nonqualified Stock Options Before Exercise
• Exercising Nonqualified Options
• Cashless Exercise of Nonqualified Options
• Using Stock to Exercise Nonqualified Options
• Sale of Nonqualified Option Stock
• Nonqualified Option Timing Strategy

Incentive Stock Options

The following pages deal with the most complicated topic in this guide to equity compensation: incentive stock options.

• Incentive Stock Options
• Incentive Stock Options Before Exercise
• Exercising Incentive Stock Options
• Cashless Exercise of ISOs
• Using Stock to Exercise ISOs
• Early Disposition of ISO Stock
• Sale of Mature ISO Stock
• $100,000 Limit for ISOs
• $100,000 Limit and Early Exercise

Planning for Stock Options

• Stock Option Valuation

Features

• Five Myths About Stock Options