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IRS Tax Treatment of Incentive Stock Options Forms 3921, 6251, 8949

Incentive stock options (ISO) are compensation to employees in the form of stock rather than cash. With an ISO, the employer grants to the employee an option to purchase stock in the employer's corporation, or parent or subsidiary corporations, at

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Posted in Alternative Minimum Tax (AMT), Stock Options

Tax Treatment of Incentive Stock Options (ISO’s): Qualifying Disposition

Incentive Stock Options (ISO) are taxed based on how and when the stock is disposed and whether the disposition is qualifying or non-qualifying. Disposition of stock is typically when the employee sells the stock, transfers the stock to another person

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Posted in Stock Options

Business Ownership Succession Planning

Consideration 1: Selling your business interest outright. When you sell your business interest to a family member or someone else, you receive cash (or assets you can convert to cash) that can be used to maintain your lifestyle or pay your estate taxes.

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Posted in Retirement, Self Employ, Small Business, Sole Proprietor, Stock Options, Sub-chapter S, Tax Guidance & Preparation

How to Properly Close Down Your Business

Closing down your business is hard and heart breaking and if you are at the point that you are actually reading this post then people have probably been nagging you for money and you are at the end of your

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Posted in Appeals & Audit Resolution, Asset Classification, Back Taxes Owed, Debt, Disallowed Expenses, Distributions, Entity Classification, IRS Collections, IRS Enforcement, IRS Levy, IRS Lien, Net Operating Loss, NOL, Paying Taxes, Self Employ, Small Business, Sole Proprietor, Stock Options, Tax Guidance & Preparation, Tax Problems & Requests, Tax Relief

Employee Stock Options and Alternative Minimum Tax (AMT)

Okay this is fun, writing about employee stock options that is. The biggest thing that kicked me in the jimmy as it were was the Alternative Minimum Tax (AMT) obligation associated with Incentive Stock Options that were exercised (converted to

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Posted in Alternative Minimum Tax (AMT), Stock Options

Statutory Stock Options – IRS Form 3921

There are essentially two kinds of stock options, statutory and non-statutory.  If you exercise an Incentive Stock Option during 2010, you should have received IRS Form 3921, Exercise of an Incentive Stock Option Under Section 422(b), or a statement, from the

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Posted in Stock Options

New IRS Forms for Reporting Exercise of Stock Options

The IRS has issued two new forms for reporting stock options. Form 3921, Exercise of an Incentive Stock Option Under Section 422(b), and Form 3922, Transfer of Stock Acquired Through An Employee Stock Purchase Plan Under Section 423(c), reflect the

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Posted in Stock Options

Options Traders and taxes

The 1099-INT and 1099-DIV reported to the Internal Revenue Service details how much you received in interest and dividends through your account, while form 1099-B reported the total proceeds of your sales of stocks and bonds during the year. The

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Posted in Deductible Expense, Disallowed Expenses, Net Operating Loss, NOL, Passive Activity, Small Business, Stock Options, Tax Deductible Expenses, Tax Guidance & Preparation, Tax Problems & Requests, Taxable Income

The easist way for investment ‘traders’ to report transaction gains and losses to the IRS

According to the instructions for Schedule D (page 6), instead of entering the details of each transaction separately on Schedule D or D-1, you can attach a statement containing all of the same information as Schedules D and D-1 as

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Posted in Capital Gain, Capital Loss, Cash Transaction, IRS Examination, Stock Options, Tax Guidance & Preparation
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