(Second edition expected to be released December 15, 1999 and
will contain substantial enhancements)
This is the definitive book on stock
option strategies. STOCK OPTIONS shows holders of compensatory stock
options how to make the right choices and avoid costly mistakes. It
is the first book to explain, in clear and understandable language,
what options are, how they are taxed (including how to prepare IRS
Form 1040), and how to maximize their value.
Written for the layperson, and a must read for employees who have
employee stock options, STOCK OPTIONS is also used by CPA firms as a
reference manual and training course for tax professionals. Michael
R. Griesmer, CPA, a former senior tax manager at Arthur Andersen LLP, and now a tax partner at McClintock Accountancy Corporation, says:
"STOCK OPTIONS is so comprehensive and insightful that tax
professionals, financial planners, and investment advisors must read
it or face the risk of embarrassment from clients knowing more about
stock options than they do".
After reading STOCK OPTIONS, you will know:
* the differences between an incentive stock option (ISO) and a nonqualified stock option and how tax law treats them differently
* what happens on the date you exercise your option
* what happens on the date you sell the stock
* when to exercise options and hold the stock
* how to convert ordinary income into capital gain
* the significance of disqualifying vs. nondisqualifying dispositions
* that SEC-imposed restrictions may present you with a tax-saving opportunity
* when, why and how to shift taxable income to a different year
* how the alternative minimum tax affects the exercise of ISOs
* how the alternative minimum tax credit changes income tax planning
* how to pay the exercise price, without using cash, in a tax-deferred exchange of stock
* when to buy the stock rather than exercise an option early
* what reload options are and how they work
* what makes one option more valuable than another
* how to compare stock option packages from different employers
* what "substantial risk of forfeiture" means and why it's so
important
* what is, and is not, a substantial risk of forfeiture
* the special tax rules when Section 16(b) of the Securities Exchange
Act of 1934 applies
* that some optionees may exercise UNVESTED options--both nonqualified
and incentive stock options
* when it's wise to exercise an UNVESTED option and why
* the risk involved in exercising an UNVESTED option
* the tax risk involved in merely asking the corporation for
permission to exercise UNVESTED incentive stock options
* what a repurchase option is
* that the terms of a repurchase option can result in the stock being
subject to a substantial risk of forfeiture
* the adverse tax consequences if the optionee exercises an option,
makes a Section 83(b) election, and later forfeits the stock
* that you can make a Section 83(b) tax election after exercising
UNVESTED options
* the income tax consequences of exercising an UNVESTED ISO and making
a timely Section 83(b) tax election
Audit Proof Your Income Tax Return
Learn how to prepare a complete and accurate income tax return and
make it audit proof. STOCK OPTIONS gives readers the upper hand
against any IRS challenge.
Robert R. Pastore, CPA is one of America's leading
authorities on compensatory stock options. He was formerly a senior
tax consultant at Arthur Andersen LLP, one of the world's premier
accounting firms, where he provided tax consultation to corporate
executives and high net worth individuals. From time to time, he
teaches a course on stock options for Arthur Andersen tax
professionals. Mr. Pastore earned an MBA
from The University of Michigan, specializing in corporate finance.
He also holds the professional designation Chartered Financial
Analyst, awarded by the Institute of Chartered Financial Analysts. A
Registered Investment Advisor, Mr. Pastore's San Francisco Bay Area
firm, Pastore Capital Management, creates tax-efficient investment
portfolios for high net worth individuals and offers professional
investment management services to corporations, public and private
foundations, public funds and educational institutions.
