The minimum tax credit, or MTC, is a non-refundable tax credit created when AMT is paid on deferral items. In tax years after AMT is owed, the MTC is recovered by reducing the taxes you otherwise would owe. It could take just one year to recover your MTC, but it often takes several years, even decades.
When RSUs vest, the full value of the shares (number of shares vesting times the share price) is taxed as wage income. This is exactly the same as how an equivalent cash bonus is taxed.
Without a liquid market to sell shares, it can be challenging for employees at pre-IPO companies to pay the taxes as their RSUs vest – either because they don’t want to pay taxes on illiquid “paper” wealth, or because they can’t afford to. Enter the double-trigger RSU.
I'm excited to introduce the Equity Divestment Plan! My goal with the Equity Divestment Plan is to help you make the most out of your equity by selling the right shares and holding on to the others, without the pressure of committing to an AUM or ongoing financial planning relationship.
I’ve always had the belief that filing an 83(b) election alongside an early exercise of stock options is a must. But are there situations where not filing the 83(b) election makes more sense? Here, I’m setting out to challenge my long-held belief.
Employee stock purchase plans are a popular benefit offered by public companies that allow employees to purchase company stock at a discount. The taxation of ESPPs is complicated, and hopefully, this primer will give you a clear understanding of how your ESPP shares might be taxed.
