Tax Planning 2018

Are there any opportunities for executives with large amounts of corporate stock in the 2018 tax law changes?


With the new tax law changes, there will be many executive who may be moving to a lower tax bracket. Such executives may want to take advantage of several opportunities before the law sunsets on Jan. 1, 2026. First consideration can be to exercise option on nonqualified stock options [NQOs] at the lower tax rate. Second, consider exercising incentive stock options [ISOs] because they may no longer be subject to the Alternative Minimum Tax [AMT]. For more significant tax savings an Executive can consider electing Section 83(b) with respect to any future grants, whereby allowing more of the appreciation in the shares to be taxed at capital gains rates rather than as ordinary income.


If these considerations apply to you and you have further questions we can answer and provide further guidance, reach us at | | [713.979.2300].