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Instacart IPO Stock Option Planning

Instacart IPO Stock Option Planning

Instacart is eying an IPO (Initial Public Offering) in the coming months. How can employees best prepare to handle RSUs and stock options? On August 25, 2023, Instacart filed its S-1 with the SEC with the intent to take the company public after many fits and starts...

Why RSU Vesting Hurts at Tax Time

Why RSU Vesting Hurts at Tax Time

If you’ve ever received a painful tax bill on April 15th and wondered what happened, this post is for you. RSU vesting hurts at tax time! You might have wondered at the time, “How can I possibly owe this much in taxes?”. After all, your company did withhold A Lot of...

The Single Most Important Question If You Have RSUs

The Single Most Important Question If You Have RSUs

In my years of experience helping clients plan for equity compensation, I often see clients with blinders on when they think about the risk in their portfolio of investments. Things may be going along nicely at work, steady pay, great bonuses and all these RSUs!...

Leaving Your Job with ISOs, To Exercise or Not

Leaving Your Job with ISOs, To Exercise or Not

If you’ve ever left a position with un-exercised Incentive Stock Options (ISO) grants, you’ve faced a difficult decision. Should you exercise ISOs or let them convert to Nonqualified Stock Options (NQSOs)? To make matters worse, your company will make the decision for...

Required Minimum Distribution Relief for IRAs

Required Minimum Distribution Relief for IRAs

Since 2019, we’ve seen numerous changes to IRA rules with both the Secure Act and Secure Act 2.0. We're going to focus on the required minimum distribution relief for IRAs.  Secure 2.0 changed the required beginning date for IRA distributions to 73 for this year....

How to Avoid the Alternative Minimum Tax

How to Avoid the Alternative Minimum Tax

If you have Incentive Stock Options (ISOs), you may have heard a lot about the Alternative Minimum Tax or AMT. We’ll explain the basics of how the tax is calculated and how you can minimize or avoid the tax altogether. What Is the AMT? AMT was designed to prevent a...

When Rental Activities Go Wrong

When Rental Activities Go Wrong

Today we’re going to look at a recent Tax Court case regarding a husband and wife partnership with rental property. An example of when rental activities go wrong! In the case of Dunn v. Commissioner, TC Memo 2022-112, the married couple lost deductions for their...

Top 3 Errors to Avoid with Stock Options

Top 3 Errors to Avoid with Stock Options

Filing taxes for stock options and equity compensation can be deceptively tricky. In addition to your W2, you might receive numerous other forms like: Form 1099-B, 3921 and 3922. Worse yet, these forms can be incomplete (and possibly incorrect!) leading to the...

PFIC

PFIC

What is It, How is It Taxed, and How is It Reported? Before 1986, investing in foreign mutual funds was all the rage. The United States (US) wanted a way to make US-based mutual funds the preferred method of investing for US taxpayers. You see, mutual funds that were...

Home Energy Tax Credits

Home Energy Tax Credits

In August 2022, the Inflation Reduction Act revised two credits available for energy efficient home improvements and residential clean energy equipment. The credits are now worth more and extended further than under previous legislation. Let’s find out how you can...

Qualified Small Business Stock

Qualified Small Business Stock

There are very few “free lunches” in the tax code. Qualified Small Business Stock (commonly referred to as “QSBS”) rules are one of the best giveaways in the tax code. Imagine selling $10,000,000 of stock at a gain and paying no tax on the profit on April 15th. That’s...

Tax Deductions vs Tax Credits

Tax Deductions vs Tax Credits

Today we’ll explore the differences between tax credits and tax deductions. While the terms are often used interchangeably, there is a significant difference in your tax bill depending on which one we are talking about. Tax deductions reduce your taxable income, but...

Download our free guide – Top 5 Big Tax Mistakes to avoid with Stock Options

thumb-placeholderAs a Certified Public Accountant, John is passionate about helping families make great tax decisions!

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