Author Description

In this book, Michael Gray, CPA helps to chart the way through a minefield of tax traps surrounding equity compensation. Whether you are an employee wrestling with managing your employee stock options, stock grants or ESOP benefits, or an advisor helping a client manage these issues, you will find Secrets of Tax Planning For Employee Stock Options, 2014 Edition to be an invaluable reference. Have a specific question? Our detailed table of contents will guide you to the answer. Mr. Gray illustrates the concepts in the book with many examples to make his explanations clear and understandable. Major events are highlighted, including receiving unvested options, termination of employment, divorce, estate planning and death. The chapter on incentive stock options includes a clear explanation of how the alternative minimum tax applies and how the alternative minimum tax credit is recovered. There is also a chapter about related issues, such as the challenge of swamped employees in managing their options, diversification, identifying securities sold, what to do when you don t have the cash to pay the tax, and whether interest expenses are deductible. Finally, Mr. Gray outlines some proposals for tax relief. The book is up-to-date through the American Taxpayer Relief Act of 2012 (fiscal cliff tax legislation), enacted on January 1, 2013. Recent developments about the surtax on net investment income are included. Supporting IRS rulings and regulations, Internal Revenue Code and court ruling citations are included for further research. IRS and California forms, instructions, publications and audit guides relating to stock options and the alternative minimum tax are included in the appendix. To round out the coverage of equity compensation, chapters on Stock Grants (including RSUs) and Employee Stock Ownership Plans (ESOPs) are included.