Understanding Stock Options and the Tax Implications - FinancialKnowledge.net

http://www.financialknowledge.net/archives/566

Beginning/Intermediate Course:  Description

Participants who attend this course will gain a better understanding of the role company stock can play in their financial portfolio. Through interactive exercises, participants will attain a good understanding of the terminology used and the operation of employee stock options. Through direct application of current tax laws, participants will gain knowledge of the tax ramifications for stock purchases and sales made via employee stock options.
Audience

Recommended for those who have been granted stock options.
Materials

Each participant will receive a 50-plus page workbook, which reviews each topic covered and provides resources and a glossary for future use
Duration

2-3 hours
Learning Outcomes

Review the benefits of stock options and the risks associated with purchasing stock option shares.
Put into action the bargain element formula.
Uncover two types of employee stock options and their differences.
Discover and understand twelve key terms used with stock options.
Review four triggering events that affect a stock option's grant expiration date.
Utilize three methods for exercising stock options.
Practice stock split calculations and assess their impact on stock options
Examine important information on insider trading and tipping.
Perform real-life calculations for employee stock option exercises.
Uncover five essential tax terms.
Review current tax rate information.
Determine whether gains and losses are short-term or long-term and how they are computed.
Examine how regular and alternative minimum tax is calculated.
Discover who is required to make estimated tax payments.
Analyze and solve real-life employee stock option case studies using innovative, easy-to-use tax flow charts.
Distinguish between qualifying and disqualifying dispositions.
Compare taxes on cash and cashless exercises as well as sell-to-cover stock option transactions.
Figure how much tax is owed, how it is treated, and when it needs to be paid.