Softcover

ISBN 10: 0967498171 ISBN 13: 9780967498171

Publisher: Fairmark Press Inc., 2005

This is the latest edition of the most popular book on this subject, providing a plain language explanation of employee stock options and related forms of equity compensation. It continues to be the best selling book on this topic because no other book can make these claims:

* Written in a direct, informal style that makes it easy for a novice to read, yet authoritative enough to be used by a tax professional or investment advisor.

* Covers nonqualified stock options, investment stock options, restricted stock, restricted stock units and employee stock purchase plans.

* Includes a balanced discussion of investment aspects, covering advantages of holding employer stock as well as the risks in failing to diversify.

* Provides the clearest possible explanation of complicated tax rules such as the way alternative minimum tax (AMT) applies to incentive stock options.

* Stresses sound planning and warns against faulty strategies.

* Offers pragmatic tips on topics like record keeping, selecting an advisor, and paying estimated tax.

* Updated for recent changes in the tax law and other developments.

The 2005 edition is a major revision from the previous edition, with new design, content and organization to make it even easier for employees to learn what they need to know about their equity compensation.

* Reflects tax changes occurring in 2004, including new regulations for incentive stock options and new rules for nonqualified deferred compensation.

* Now covers restricted stock units (RSUs).

* New chapter on how to select and work with an option advisor.

* New graphics and callouts make it easier to grasp the main points.

Review:

Just about everyone has heard a story about a corporate secretary or twentysomething Microsoft employee who retired early--as a millionaire--not because of winning the lottery, but because she exercised the stock options granted by her company. The fact is, many, many working Americans have access to stock and option plans in the workplace, and although it is a bit of a stretch to assume that such plans are a guaranteed ticket to riches, equity compensation can be an intelligent means for building wealth. The trick, according to Kaye A. Thomas, is understanding and handling it properly, and this is where Consider Your Options comes in.

Thomas, a veteran tax lawyer, has written a straightforward, no-nonsense, plain-language guide to getting the maximum value from your equity compensation. He begins with the basics--what stock is and how to buy and sell it, stock grants and purchases, options in general--and proceeds with clear examinations of nonqualified and incentive stock options. From there, he leads the reader through the ins and outs of exercising stock options, vesting, and employee stock-purchase plans, with an emphasis on tax implications and financial planning (an entire section of the book, for example, deals with the Alternative Minimum Tax).

"There are certain things about stock, options, and taxes that are almost never explained because every idiot knows them," Thomas writes. "Unfortunately, there are many normal, intelligent, educated adults who don't know these things--because hardly anyone ever bothers to explain them." Now that Thomas has bothered, novices and experts alike can avoid the common mistakes and poor planning that jeopardize the highest return from these benefits. --Svenja Soldovieri

About the Author:

Kaye Thomas is a cum laude graduate of Harvard Law School with over 20 years’ experience as a tax lawyer, and a nationally recognized expert who is quoted regularly in the media, including the New York Times, Wall Street Journal and Forbes. He is also founder of the National Board of Certified Option Advisors, an organization formed to provide a way for professional option advisors to develop and demonstrate their expertise. His other books include Capital Gains, Minimal Taxes and Fairmark Press Guide to the Roth IRA. His writings also appear on leading financial web sites such as Tax Guide for Investors and Yahoo Finance. He has spoken on stock options in locations all over the United States, including San Diego, Baltimore, Maui, Boston, Seattle and New Orleans.