Employer stock options are a potentially valuable asset for recipient employees, especially those who work for start-ups or high-growth companies. For example, many Silicon Valley millionaires reaped sizable windfalls by exercising their employer stock options. Here’s a summary of the federal income tax rules for incentive stock options (ISOs). Tax Planning Objectives Stock options give you
Is your business struggling with a shortage of skilled workers in today’s tight labor market? One possible option is to invest in education programs to upskill your current employees. This strategy can help bridge the gap at your workplace and build loyalty among workers. Plus, the education may qualify for favorable treatment. Here are some possible
The net investment income tax (NIIT) was enacted more than a decade ago. While repeal has been discussed more than once, it continues to ensnare a growing number of taxpayers. If you’re at risk for this additional tax, there may be some options to reduce your odds of owing it or the amount of your
Are you a small business owner or corporate owner holding appreciated company stock in your 401(k) or other qualified employer-sponsored retirement plan? At some point, you may decide to cash in your stock. If so, you can benefit from an unprecedented federal income tax provision on the books. Briefly stated you can save tax if you
The holidays are often referred to as “the most wonderful time of year” – and, for some people, that’s due in part to their year-end bonuses. While bonuses are an important part of rewarding employee performance and enhancing retention, they also can raise a variety of tax issues for both employers and employees. Here’s what you
The holidays are just around the corner, and now is the time for employers to start thinking about treating their employees with holiday parties or gifts. Such gestures are always a nice idea. Plus in a tight labor market, they can be a smart way to show appreciation and boost retention. But you need to know
In recent years, many Americans have been the victims of natural disasters. If you’re unfortunate enough to suffer a personal casualty loss, here are the federal income tax implications. Limited Deductions for Personal Casualty Losses In theory, the federal income tax rules allow you to claim an itemized deduction for personal casualty losses that aren’t covered
Attention: Your business may soon have to meet new reporting requirements that take effect on January 1, 2024. Under the Corporate Transparency Act (CTA), which was enacted in 2021, certain companies are required to provide information related to their “beneficial owners” – the individuals who ultimately own or control the company – to the Financial
If your business is picking up steam, you may be looking to expand your workforce to meet the demand. Here’s a practical idea: Hire employees who qualify for the Work Opportunity Tax Credit (WOTC). The credit is available for workers who represent one of the “target” groups specified by law. There’s no limit on the
Some taxpayers may be unaware of all the federal tax reporting requirements for cryptocurrency transactions – especially when it comes to issuing and receiving a Form 1099 for 2023. If you buy something with cryptocurrency, you won’t receive one. However, you may receive a Form 1099 if you receive a crypto payment. There are several types of Form
