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Understand the Tax Impact of Your Equity Compensation
Equity compensation can create tax consequences at several different points. An award may create income when it vests, an option may have consequences when exercised, and selling shares can create a separate capital gain or loss.
We coordinate the information from your employer and brokerage accounts so compensation income, tax basis, withholding, and subsequent stock transactions are reported consistently.
For significant transactions, planning before an exercise or sale can also help you understand the potential tax impact before the decision is final.
Equity Compensation Tax Reporting & Planning
We help employees and executives navigate the major tax events associated with employer stock and equity-based compensation.
Restricted Stock Units (RSUs)
Coordinate income recognized when RSUs vest with the basis and reporting required when the resulting shares are later sold.
Incentive Stock Options (ISOs)
Review ISO exercises and sales, including holding periods and potential alternative minimum tax considerations.
Nonqualified Stock Options
Report compensation and subsequent stock transactions associated with nonqualified stock option exercises.
Employer Stock Sales
Review sales of employer shares and reconcile compensation already reported with the correct investment tax basis.
Cost Basis Review
Help prevent compensation income from being taxed twice by reviewing the basis used for shares acquired through equity compensation.
Pre-Transaction Tax Planning
Estimate potential federal tax consequences before significant option exercises, vesting events, or stock sales when possible.
Who We Serve
For Professionals Whose Compensation Goes Beyond Salary
We work with executives, technology employees, startup employees, professionals, investors, and other taxpayers whose compensation includes employer stock or equity awards.
These clients often have both payroll and investment reporting tied to the same transaction, making careful coordination especially important.
Frequently Asked Questions
Are RSUs taxable when they vest?
RSUs generally create taxable compensation when they vest, with additional gain or loss possible when the shares are later sold.
How are stock options taxed?
Tax treatment depends on the type of option, when it is exercised, and when the acquired shares are sold.
What is the difference between ISOs and NSOs?
Incentive stock options and nonqualified stock options follow different federal tax rules and can create different reporting requirements.
Why can equity compensation create an unexpected tax bill?
Vesting, exercises, stock sales, withholding, and capital gains can combine in ways that are not always fully covered by payroll withholding.
Can you help before I exercise options or sell shares?
Yes. Planning before a significant equity transaction can help estimate the potential tax consequences.
Guidance for Smarter Financial Decisions
Practical insights to help you better understand taxes, investments, and important financial decisions before you make them.
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Comprehensive Tax & Financial Guidance for Individuals and Businesses
Whether you're an individual looking for help with personal tax preparation or a business owner managing accounting, tax planning, and complex financial decisions, our firm provides practical, personalized guidance tailored to your unique needs and goals.
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