Equity Compensation - Stock Options Pt. 2
Author: Daniel Johnson
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2027 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This course focuses on advanced strategies for managing nonqualified stock options (NQSOs) and incentive stock options (ISOs) to maximize their value while minimizing tax liabilities. Participants will analyze and compare the tax implications and benefits of NQSOs and ISOs for both employees and employers. The course will cover strategies for timing the exercise of stock options to optimize tax efficiency and financial outcomes. Participants will also assess the risks and rewards associated with holding or selling shares acquired through stock option exercises. Additionally, the course will examine various planning strategies, such as cashless exercises and stock swaps, which are frequently used in stock option planning. By the end of the course, participants will have a deep understanding of advanced stock option strategies and be well-equipped to make informed decisions to maximize the value of their stock options while minimizing tax liabilities.
Publication Date: September 2024
Designed For
Financial/tax professionals working with executive clientele
Topics Covered
- Advanced strategies for NQSOs and ISOs
- Tax implications and benefits of NQSOs and ISOs
- Timing strategies for exercising stock options
- Risks and rewards of holding or selling shares from stock option exercises
- Cashless exercises and stock swaps
- Minimizing tax liabilities and maximizing stock option value
Learning Objectives
- Identify how to analyze basic and advanced strategies for nonqualified stock options (NQSOs) and incentive stock options (ISOs) to minimize taxes and maximize stock option value
- Identify and compare the tax implications and benefits of NQSOs and ISOs for employees and employers
- Identify how to develop strategies for timing the exercise of stock options to optimize tax efficiency and financial outcomes
- Identify how to assess the risks and rewards associated with holding or selling shares acquired through stock option exercises
- Identify additional planning strategies, such as cashless exercises and stock swaps, frequently used in stock option planning
Level
Advanced
Instructional Method
Self-Study
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Prior knowledge of Equity Compensation
Advance Preparation
None
