Preferred Stock Bonus


S

SMF

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?
 
Last edited by a moderator:
Ad

Advertisements

R

Rich Carreiro

SMF said:
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).
 
Last edited by a moderator:

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads


Top