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Gonzalez Scott Harris Angela Jones Angela

Just sell, put in ROTH and trade SPY options (sell puts/calls -> wheel strategy) !😎

Martinez Kevin Martinez Charles Anderson Timothy

Really straight forward explanation! Thanks

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

At 5:12, why is cost basis the blue line and not the 8.50 line? Thanks!

What if your company do a stock split on your 2000 stocks promises In a 1 out of 10 ratio ?

For NQSOs: Income tax is realized when options are exercised. Then say I hold on to the shares for a certain amount of time for whatever reason, the shares have appreciated in value. When I sell, would that just be LT gains tax? Thanks!

Whoooph! That's tough!

Mike, thank you for XYPN presentation about equity compensation, it’s was brilliant 🎉 Lyubomyr

If ESPP fund is after tax fund, W2 Box 1 should not be included ESPP fund. So only at the time selling ESPP, the related oridinary income tax and Capital Gain tax need to be calculated.

Is ESPP after tax fund or before tax fund ?

This was extremely helpful - thank you!

This is the best ESPP explanation I have seen on TH-cam

Great video! Clear and to the point explanation of the RSU process. My one question is if we can sell our vested RSUs if the company is private?

Can you help me understand how the RSU share tax withholding would appear on a W-2? I am afraid that my shares are being withheld but the withholding doesn’t appear on my w-2 and I am paying taxes twice on them.

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

How can I perform my calculations if the Company didn't grant me in terms of number of stocks but instead gave me a value in USD?

Thanks for this information! Really appreciated 😊

Hello! In this example, are ether or these plans qualified or non-qualified plans?

Thank you for this, it was very helpful and you did a great job breaking the ESPP process down!

if I have strong evidence that the company will do well in the future, would it make sense for me to exercise when the actual price of the stock is close to the exercise price? Would I theoretically avoid the income tax and only need to pay capital gains?

What happens when your company withholds shares but the total price of those shares are bigger than your tax amount? Ie your shares are on each 1k you got 4 shares and your tax income is about 30% so your company withholds 2 shares (2k) to pay 1.2k usd. Do you lose the other 800 usd ? Is there a way to recover them? Thanks for your video !

🎯 Key Takeaways for quick navigation: 00:04 *💼 Understanding Employee Stock Purchase Plans (ESPPs)* - Employee Stock Purchase Plans (ESPPs) allow employees to purchase company stock at a discounted price through payroll deductions. - Enrollment periods determine participation, with employees electing to allocate a percentage of their salary to the ESPP. - Contributions accumulate in an escrow account until the purchase date, usually every six months, when stock is bought at a discount. 03:37 *💰 Taxation of Employee Stock Purchase Plans (ESPPs)* - ESPPs are subject to various tax implications, including ordinary income tax, short-term capital gains tax, and long-term capital gains tax. - Qualified ESPPs offer preferential tax treatment if the stock is held for at least one year from the purchase date and two years from the offering date. - Understanding the taxation timeline and potential tax benefits is crucial for maximizing returns and minimizing tax liabilities. 07:09 *📈 Deciding When to Sell ESPP Stock* - Employees must consider their risk tolerance and concentration risk when deciding when to sell ESPP stock. - Selling immediately locks in the discount but results in immediate taxation, while holding for longer may qualify for lower long-term capital gains tax rates. - The decision to hold beyond the two-year period depends on the stock's performance during the offering period and its impact on tax liabilities. Made with HARPA AI

this helped me so much

Thank you. How to report it on the tax form?

When your employer sells RSU shares to cover withholding, do they report that withholding on the W-2 in the same box as withholding for wages?

Excellent video !! Thanks.

My company is doing the cash bonus option and I can't wait until my 1st grant date!

I retired (100% Normal S.S.) in 2022. Have 5 years (2018 to 2022) of ESPP at cost basis of $36,000 ($7,200 ave. X 5 years). Current stock value is $136,000. Don’t need to sell, but wanted to sell over a few years to minimize taxes. Should i ladder the sales to take advantage of the 2 year long-term period?

Bestestest explanation so far 🎉

Very good video. Thanks for the breakdown

Helpful, thank you! The thoughts on sell or not was very useful to evaluate for myself.

Hi! This is super helpful. Thanks for the video. One Question plz - When I sale these 13k shares in future, will my basis for these 13k shares should be 20k (gross amount on my w2 that I paid taxes on) or will the basis be 13k only? Thank you so much!

I have a hard time interpreting my 1099b for rsu’s cause my company withholds 1/3 of my shares for taxes. Do I just need to report the capitol gains cause on my w2 it reflects earned income from my vested stock. If I enter total net proceeds from my stock sale on 1099b it wants to double tax me?!

Awesome job. Great supplement to my CFP book.

Great video! You said “choose to exercise a certain amount of ISOs to stay under AMT”. Aren’t you required to exercise a certain amount? Or can you pick and choose when to exercise and how much to exercise. Thanks

So if the share price value goes down more than the discount, let’s say $5, then it doesn't matter if it is a disqualifying disposition or a qualified disposition, right?

@Java Wealth Is there any good reason to purchase DSPP (direct stock purchase plan) as opposed to ESPP? My son just got a job in a FAANG that offers DSPP but it offers no discount. He already has exposure to the company through normal 401k fund allocations (over 6%), and through his Robinhood (no brokerage fee). Is it worth it for him in any way to make DSPP purchases? Thank you.

super helpful! does that mean if people exercise and sell the NSO the same time there is no way to offset the income tax through short term long term capital loss?

So are you saying that if your numbers 10 and 15 are swapped ($15 on offering/start date and $10 on purchase date) then you would pay less taxes between 1-2 years than you would keeping it 2 or more years? I don’t understand how or why you would be taxed more.

Simple and very informative ❤. Just what i wanted to know.

Great video. In summary, the government taxes me on stocks that I've received after paying taxes on them and if I wait any longer to sell them I simply have to - you guessed it - pay taxes on the sale.

Another perspective of RSUs along with multi country taxation is here. th-cam.com/video/83wk3puQ1IM/w-d-xo.html

If I work for a company with shares that historically increase in value, is their an option to pay the taxes out of pocket to preserve as many shares as possible and what other considerations might go into that decision?

Very helpful, thanks!

So, to take advantage of the lowest tax rate, it would make sense to hold the stocks for 1 (from the purchase date) or 2 years( from the offering date)and then sell them only if the actual price of the share increases in value or goes beyond the offering price. So I would say ordinary income has a higher tax rate than Long-term capital gain?

This was so helpful, thank you so much!!! :) My first ESPP plan so this was so helpful for figuring out when I should sell them.

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