[Witty]

Hey does anyone have an easy way to study the employee stock options? I can’t seem to have them click in my head. I am using Becker and the book just has a very short section on it and when I do the multiple choice the answers are not truly corresponding with what the book says. Any links or ideas would be helpful. Thanks!

AUD: 70, 73, 85!
BEC: - 81!
REG: - 75!!!!!
FAR: -

[Anonymous]

There is time requirement
, if employee holds the stock 2 years from the date of option granted
and
1 year from the date of exercise
then for the Incentive stock option
1) no gain or loss upon exercise of option and when its granted.
2)upon sale of stock only recognized long-term capital gain (sale price – option price)

For employee stock purchase plant if these two requirements are
met
then
1) No income when employee receives or exercise the option .
2)upon sale employee recognize the ordinary gain lesser of
a) FMV at granted date – option price
or
b) FMV at disposition date -option price
and
Capital gain is realized gain – ordinary income (above)

If the TIME requirements are not met then
for Incentive stock option
1)ordinary gain =FMV at exercise date – option price
2)capital gain = sale price – ordinary gain

for employee stock purchase plan
1)ordinary gain =FMV at exercise date – option price
gain increase the basis of stock
2) capital gain =selling price – increased basis.

If you sell the ISO shares at a loss, the entire amount is a capital loss and there's no compensation income to report.

[Anonymous]

I've created a comparison table with differences and similarities of ESO, ISO, and ESPP in a compact spreadsheet. How do we show spreadsheet here without sharing an email address?

[Witty]

thank you ano and amor hmmm good question maybe if you take a screen shot of the spreadsheet and paste it into the reply box?

AUD: 70, 73, 85!
BEC: - 81!
REG: - 75!!!!!
FAR: -

[Anonymous]

I don't think it can paste just like that. I've seen people like Cricket who shared her spreadsheet with just a code, something like //copy.gj//
I don't know how:(

[sar_rah]

Go through the SIM that becker provides. That was the only way I was able to have to click.

AUD: 98
REG: 91
BEC: 86
FAR: 83

DONE DONE DONE and DONE all on the first try! It IS possible, just keep on studying!

[monikernc]

amor you could post a link to public google docs folder if you use google docs

FAR 7/25/15 76!
AUD 10/30/15 93
BEC 2/27/16 82
REG 5/23/16 88!
Ninja Book and MCQ and the forum - all the way!!!
and a little thing i like to call, time and effort!
if you want things to change, you have to do something different

[Anonymous]

@Monikernc, I tried that route but it's displaying my email address.

[jeff]

You can try an imgr thingy

Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Anonymous]

View post on imgur.com

[Anonymous]

I did it!
Thanks, Jeff.
I figured it out even if it's misspelled.
I didn't know I'm an IT genius, haha.

[Author]

Replies