STOCK OPTIONS: An Authoritative Guide to Incentive and Nonqualified Stock Options - Hardcover

Pastore, Robert R.

Hardcover

ISBN 10: 0966889916 ISBN 13: 9780966889918

Publisher: PCM Capital Publishing, Sausal, 1999

Synopsis

(Second edition expected to be released December 15, 1999 and will contain substantial enhancements)

This is the definitive book on stock option strategies. STOCK OPTIONS shows holders of compensatory stock options how to make the right choices and avoid costly mistakes. It is the first book to explain, in clear and understandable language, what options are, how they are taxed (including how to prepare IRS Form 1040), and how to maximize their value.

Written for the layperson, and a must read for employees who have employee stock options, STOCK OPTIONS is also used by CPA firms as a reference manual and training course for tax professionals. Michael R. Griesmer, CPA, a former senior tax manager at Arthur Andersen LLP, and now a tax partner at McClintock Accountancy Corporation, says: "STOCK OPTIONS is so comprehensive and insightful that tax professionals, financial planners, and investment advisors must read it or face the risk of embarrassment from clients knowing more about stock options than they do".

After reading STOCK OPTIONS, you will know:

* the differences between an incentive stock option (ISO) and a nonqualified stock option and how tax law treats them differently

* what happens on the date you exercise your option

* what happens on the date you sell the stock

* when to exercise options and hold the stock

* how to convert ordinary income into capital gain

* the significance of disqualifying vs. nondisqualifying dispositions

* that SEC-imposed restrictions may present you with a tax-saving opportunity

* when, why and how to shift taxable income to a different year

* how the alternative minimum tax affects the exercise of ISOs

* how the alternative minimum tax credit changes income tax planning

* how to pay the exercise price, without using cash, in a tax-deferred exchange of stock

* when to buy the stock rather than exercise an option early

* what reload options are and how they work

* what makes one option more valuable than another

* how to compare stock option packages from different employers

* what "substantial risk of forfeiture" means and why it's so important

* what is, and is not, a substantial risk of forfeiture

* the special tax rules when Section 16(b) of the Securities Exchange Act of 1934 applies

* that some optionees may exercise UNVESTED options--both nonqualified and incentive stock options

* when it's wise to exercise an UNVESTED option and why

* the risk involved in exercising an UNVESTED option

* the tax risk involved in merely asking the corporation for permission to exercise UNVESTED incentive stock options

* what a repurchase option is

* that the terms of a repurchase option can result in the stock being subject to a substantial risk of forfeiture

* the adverse tax consequences if the optionee exercises an option, makes a Section 83(b) election, and later forfeits the stock

* that you can make a Section 83(b) tax election after exercising UNVESTED options

* the income tax consequences of exercising an UNVESTED ISO and making a timely Section 83(b) tax election

Audit Proof Your Income Tax Return

Learn how to prepare a complete and accurate income tax return and make it audit proof. STOCK OPTIONS gives readers the upper hand against any IRS challenge.

About this title

About the Author

Robert R. Pastore, CPA is one of America's leading authorities on compensatory stock options. He was formerly a senior tax consultant at Arthur Andersen LLP, one of the world's premier accounting firms, where he provided tax consultation to corporate executives and high net worth individuals. From time to time, he teaches a course on stock options for Arthur Andersen tax professionals. Mr. Pastore earned an MBA from The University of Michigan, specializing in corporate finance. He also holds the professional designation Chartered Financial Analyst, awarded by the Institute of Chartered Financial Analysts. A Registered Investment Advisor, Mr. Pastore's San Francisco Bay Area firm, Pastore Capital Management, creates tax-efficient investment portfolios for high net worth individuals and offers professional investment management services to corporations, public and private foundations, public funds and educational institutions.

Edition details

• Publisher: PCM Capital Publishing, Sausal
• Publication date: 1999
• Language: English
• ISBN 10: 0966889916
• ISBN 13: 9780966889918
• Binding: Hardcover
• Edition number: 1
• Number of pages: 118