I am not a fan of stock options. As I've said before, my personal payday motto is "say it with cash."
If I then want to invest in a company, be it the one I work for or another business, then I'll use some of my added income to do so.
That said, stock options are still popular in some workplaces.
Cashing them in, though, can cause all sorts of tax headaches. That's just one more reason they're not my favorite form of compensation.
As tax lawyer Robert W. Wood notes in a recent Forbes column, most companies provide at least some general tax advice to employees when they award options, but it's often not enough.
So Wood put together a list of 10 things you should know about stock options or grants if they are part of your pay package.
Yep, looking at Wood's list -- ISO, NSO, AMT, Internal Revenue Code section 83(b) election, the "dreaded" IRC Sec. 409A -- of tax considerations, I'm even more committed to good old greenbacks as my payment method!
- Say it with cash
- Year-end money moves: Investments
- The investment tax is back!
- Taxes, wealth and relativity
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