Tax Planning for Stock Options

Stock options, that is the contractual right to buy the stock of an employer by an employee at a discount price, remains a popular way for companies to compensate employees without incurring an immediate financial cost, and for employees to receive some participation in the equity of the company without incurring immediate income taxes. If you have stock options, whether Qualified or Non-Quantified, is important to consider not only when you might exercise the options during your lifetime, but also how you might hold the options after your death.