Impact of Tax Rate Uncertainty on Financial Decisions is Addressed by Year-End Content at myStockOptions.com

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The current uncertainty over the tax rates after 2010 has created unusual planning situations for anybody holding stock or receiving compensation from stock options, restricted stock, or other types of equity awards. Full of up-to-the-moment guidance, myStockOptions.com's articles and FAQs on year-end planning help employees, executives, and their advisors make smart decisions with stock grants to avoid costly mistakes they cannot afford. The website's financial-planning calculators let users explore and compare scenarios involving different future tax rates.

myStockOptions.com has updated and expanded its award-winning content on year-end financial and tax planning. With a fog of uncertainty still shrouding the post-2010 tax landscape, year-end planning will be much harder than usual this year for employees, executives, and advisors who must make decisions about stock holdings and compensation received from stock options, restricted stock, restricted stock units, performance shares, employee stock purchase plans, and stock appreciation rights. Depending on whether tax rates will go up or down in 2011, they may want to accelerate income or capital gains into 2010 or defer these into the future.

However, as the post-election lame-duck session begins on Capitol Hill, Congress remains unresolved about legislation for post-2010 tax rates or the AMT income exemption amounts for 2010. It is not clear whether the Bush tax cuts will be extended fully, extended partially, or allowed to expire. The decision may even be left until the new Congress convenes in 2011, in which case the tax legislation would be made retroactive to the start of 2011.

Because of this uncertainty over tax rates, the articles and FAQs in the section Year-End Planning at myStockOptions.com will be more valuable than ever between now and the close of 2010. Accordingly, myStockOptions.com has expanded its year-end coverage to provide a wealth of up-to-the-minute educational content on the issues, choices, and innovative strategies.

Tax Rates Should Not Be The Only Reason For Sales

Despite the looming possibility of rising tax rates, Bruce Brumberg, Editor-in-Chief of myStockOptions.com, cautions against making hasty sales just because of a potential tax hike. "Employees may be making a mistake if they overreact to any potential tax increases by mimicking the recent stock sales of Microsoft CEO Steve Ballmer, Oracle CEO Larry Ellison, and Amazon CEO Jeffrey Bezos," he says.

"All it takes is just a modest increase in your company's stock price to overcome any rise in the tax rates on either ordinary income or capital gains."

Fully Up-To-Date Year-End Content

Articles on year-end topics and related ideas include:

  • Ten Ideas For Year-End Tax Planning With Stock Options And Company Stock
  • How Tax Rate Changes Impact Stock Grant Strategies (Parts 1, 2, and 3) by Stanley Trotta and Bob Gordon
  • Stockbrokers' Secrets (Part 3): Year-End Planning For NQSOs, Restricted Stock, And RSUs by W.E.B. Bantling and Michael Beriss
  • Year-End Strategies For Restricted Stock by Bruce Brumberg
  • Year-End Strategies For Employee Stock Purchase Plans by Matt Simon
  • Stockbrokers' Secrets (Part 7): Year-End Planning For ISOs by W.E.B. Bantling and Michael Beriss
  • Strategic Planning With Roth IRAs And Stock Compensation by Sue Stevens

Questions answered in the year-end section include:

  • What are year-end strategies for stock options, stock appreciation rights, and restricted stock?
  • How should the likelihood of tax-rate increases affect year-end strategies?
  • How do employees harvest capital losses against capital gains from company stock holdings?
  • Are there strategies for using capital-loss carry-forwards from prior years?
  • What risks are posed by the wash sale rule?
  • What year-end strategies can help to minimize alternative minimum tax with incentive stock options?
  • How do tax-law changes of recent years, including refundable AMT credits, affect year-end planning?
  • How can employees save taxes on company stock by making gifts and donations, including those to private foundations or grantor-retained annuity trusts?
  • For qualified small business stock, what are the details of the special 100% capital gains exclusion available until the end of the year?

Financial-Planning Tools To Help Decision-Making

In addition to having insightful content on financial-planning strategies for tax-rate increases, the full suite of financial-planning calculators and modeling tools on myStockOptions.com can help users explore and compare scenarios involving different future tax rates. Variable such as tax rates and stock prices can be easily edited for complex modeling. Various financial-planning decisions can be delved:

The Quick-Take Calculator For Stock Options can help users compare option-exercise gains at the 35% ordinary income rate in 2010 to option-exercise gains at the potential 39.6% tax rate in 2011 or later.

The I Need The Money Tool can determine the stock-price appreciation needed to cover potential tax increases.

The patented Comparison Modeling Tool for Stock Options helps users decide whether to exercise options now and sell the shares to make alternative investments or whether to wait until later in the term, when the stock price (but also the tax rates) may be higher.

The Restricted Stock Modeling Tool helps users decide whether to sell shares immediately at vesting to take advantage of the current 15% capital gains rate or whether to hold the shares into a future that may see a 20% capital gains rate (but also perhaps a higher stock price).

Corporate Licensing Available

All the content on myStockOptions.com is ideally suited for licensing by companies and stock plan providers for their stock plan participants. A customized version of the website's award-winning content can be seamlessly woven into companies' HR, benefits, and/or compensation portals. Accessible through any internet browser, 24 hours a day, 7 days a week, licensed content from myStockOptions.com lets stock plan participants answer their own questions about their stock grants whenever they need to learn more--saving time for the stock plan staff and costs for the company. For more information, visit myStockOptions.com or call 617-734-1979.

About myStockOptions.com

With exclusive articles, 750+ FAQs, the Tax Center, Global Tax Guide, an extensive glossary, and interactive tools, myStockOptions.com is the premier online resource of educational content, tools, and self-study courses on stock options, restricted stock, restricted stock units, performance shares, stock appreciation rights, and employee stock purchase plans. myStockOptions.com is written and managed by leading experts in equity compensation, and is produced by a company with a long history of successful publications explaining complex legal and financial subjects in plain English.

The influential consumer magazine PC World ranks myStockOptions.com among "the most useful sites ever" that "deliver top-notch information, support, and services." The accounting journal CPA Wealth Provider selected myStockOptions.com among companies "that have taken the lead through innovation, efficiency, initiative, or growth in the financial-planning area." The Specialized Information Publishers' Foundation honored MSO Pro with one of its Editorial Excellence Awards in the category of Best Interactive Content among niche publishers. The innovative Comparison Modeling Tool on myStockOptions.com is now patented.

myStockOptions.com has also received extensive favorable coverage in major publications, including BusinessWeek, The Wall Street Journal, The New York Times, the San Francisco Chronicle, and The Boston Globe, and on CNN, National Public Radio, PBS, Money.com, and MarketWatch.com.

myStockPlan.com, the publisher of myStockOptions.com, has also launched a new website: myNQDC.com, the only online educational resource devoted exclusively to nonqualified deferred compensation (NQDC). With clear writing and independent, unbiased expertise, myNQDC provides education about the financial planning, taxation, risk, and legal issues surrounding nonqualified deferred compensation and encourages participants to fully understand these topics and maximize the value of their plans. With tax rates likely to rise in the future, the tax-deferral advantages of NQDC will make these plans increasingly popular.

For more information, please contact Bruce Brumberg and Matt Simon at 617-734-1979.

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BRUCE BRUMBERG

MATT SIMON
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