Equity Compensation - Stock Options Pt. 1
Author: Daniel Johnson
| CPE Credit: |
1 hour for CPAs |
This course provides a comprehensive overview of stock options, focusing on the fundamental concepts, types, taxation, and planning strategies. Participants will learn to define stock options and associated terminology while understanding the basic mechanics of how they work.
The course will explore the characteristics and functioning of both nonqualified stock options (NQSOs) and incentive stock options (ISOs), analyzing the tax consequences for employees and employers. Participants will learn to differentiate between NQSOs and ISOs and examine the tax advantages and complexities of each type.
Throughout the course, participants will identify and address common challenges and considerations in stock option planning. They will develop strategies to optimize stock option benefits for clients based on their unique financial situations and goals.
By the end of the course, participants will have a solid foundation in stock option fundamentals and be well-equipped to advise clients on effective stock option planning strategies.
Publication Date: September 2024
Designed For
Financial/tax professionals working with executive clientele
Topics Covered
- Stock Option Basics
- Nonqualified stock options (NQSOs)
- Incentive stock options (ISOs)
- Summary & Takeaways
Learning Objectives
- Define stock options and associated terminology
- Explain the basic mechanics of stock options
- Describe the characteristics and functioning of NQSOs
- Explain how to analyze the tax consequences of NQSOs for employees and employers
- Explain how to differentiate between ISOs and NQSOs
- Identify the tax advantages and complexities of ISOs
- Identify and address common challenges and considerations in stock option planning
- Identify how to develop strategies to optimize stock option benefits for clients
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Finance (1 hour)
Program Prerequisites
None
Advance Preparation
None
