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Old 02-01-2006, 06:26 AM
Rich Carreiro
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Default Re: Preferred Stock Bonus

"SMF" <smfwdf[at]comcast.net> writes:

- quote -

> 2006 will receive a bonus of 400 shares of preferred stock.
> The FMV will be $4,000. How will this be taxed to me? Will
> it be in next year's W-2?


If the FMV is $4,000 and there is no vesting schedule
(i.e. the stock is yours from day one), then you'll
have $4,000 in wages.

If there is a vesting schedule, then as each chunk
vests you'll pick up wages at each vesting stage in
the amount of the then-current FMV of the vesting chunk
(unless you do the Section 83b election thing).

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
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Old 02-01-2006, 12:59 AM
SMF
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Posts: n/a
Default Preferred Stock Bonus

2006 will receive a bonus of 400 shares of preferred stock.
The FMV will be $4,000. How will this be taxed to me? Will
it be in next year's W-2?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

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