How to Avoid the IRS Tax Trap on Stock Options
KB Financial Advisor Blog
by Chelsea Rustek
1w ago
You could be overpaying your stock options tax without knowing it — even if you have a tax preparer. Here’s how to dodge this costly tax trap. Exercising your employee stock options is a good thing. After all, it usually means you’re becoming wealthier and smarter about your long-term finances.  But, like it or not, exercising stock options does complicate your yearly tax filing. So much so that if you’re not careful, a mishap can lead to the dreaded IRS tax trap: double taxation. Like the name suggests, double taxation is when your income gets mistakenly taxed twice, costing you double t ..read more
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How to calculate your alternative minimum tax (AMT): 6 simple steps
KB Financial Advisor Blog
by Chelsea Rustek
1M ago
Avoid a high alternative minimum tax (AMT) bill by understanding how ISO exercises impact it. Receiving incentive stock options (ISOs) has its perks. You can eventually sell them for a potentially life-changing payout. A payout that can be your ticket to financial freedom. However, ISOs have a downside too. Depending on how you handle them, you can get hit with the dreaded alternative minimum tax (AMT) on top of the regular income tax you owe. Needless to say, you want to avoid AMT — what taxpayer wouldn’t want to minimize their tax bill as much as possible? But you can’t do that unless you u ..read more
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RSUs vs stock options: Key differences in an IPO
KB Financial Advisor Blog
by Landon Loveall
1M ago
Understand the pros and cons of these equity types, their tax implications, and how to handle them. Your company’s IPO announcement can get the wheels in your head turning about what exact equity you have and how you think about these assets. I’ve noticed a lot of my clients refer to equity compensation or employee equity as “stock options,” but that’s not entirely accurate. Stock options are just one type of equity compensation. There are actually two main types of employee equity you may deal with: restricted stock units (RSUs) and stock options. You can have both or one of these equity typ ..read more
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Post IPO Selling Strategy: 5 Ways to Sell Stock After an IPO
KB Financial Advisor Blog
by Landon Loveall
1M ago
The IPO was announced. You took action and did the 5 things everyone must do. Now, you are in the lock out period, and it is time to develop your post IPO selling strategy. The lock out period is the time when you are restricted from selling your shares. It usually lasts six months. Now is the time to plan. You can use the next six months to prepare for ten years of wealth in one moment. There are five ways to sell your shares after the lock out expires. 1. Sell ASAP The lock out expires. You exercise and sell all vested shares on the first day. This is the simplest approach. A ..read more
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3 ways to establish & live your company values
KB Financial Advisor Blog
by Jackie Kleinman
2M ago
Strengthening your team and business starts with your values. Years ago, I worked with a national firm whose values didn’t exactly align with mine. I had to realize why things felt off, accept it, and move on. Working with parties who aren’t aligned with you is almost never worth it because it holds you back. This is especially true when the misalignment occurs with talent you hire at your company. Now, aiming for value alignment isn’t a new concept. But in my experience as an advisor, I don’t see nearly enough new founders take the time to get clarity on these things. Establishing your compa ..read more
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Should I Buy a House Now or Wait? The Impossible Money Question
KB Financial Advisor Blog
by Landon Loveall
2M ago
Should I buy a house now or wait? There is one question I struggle with more than any other.  It’s impossible to answer. On the surface it’s easy.  Buying a house is a good long-term move. There are tax benefits. You get to deduct your mortgage interest on the first $750,000 of mortgage debt.  There is a capital gains exclusion. There are investment benefits. Your mortgage allows you to use leverage.  A small down payment buys a big house. Your house might appreciate.  The mortgage payoff is fixed so 100% of the appreciation is yours. Your mortgage becomes a way t ..read more
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New year, new tax goals: 4 ways to meet your 2024 tax resolutions
KB Financial Advisor Blog
by Chelsea Rustek
2M ago
Close out your 2023 taxes and set yourself up for a prosperous 2024 with these tax tips. Now that we’ve entered a new year, you’re probably gearing up for a smooth tax season…right? Oh, just me? That’s awkward. You’re probably focused more on new workout regimens, hairstyles, travel goals, and so much more. But consider making mental room for new tax goals It doesn’t have to be hard. I even made you a simple checklist to help get you started. Here are four ways you set yourself up for your smartest tax year yet: 1. Close out the 2023 tax year Your fourth quarter estimated tax payment is due o ..read more
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Tips for working with your spouse at the same tech company
KB Financial Advisor Blog
by Landon Loveall
2M ago
Finding the time to meet someone and date are really hard when you work in tech. There are the long hours at work, and the frantic pace of San Francisco. But, if marriage is part of your plan, a number of factors could lead to working with your spouse at the same company. The New York Times reported on how the Don Draper’s of the world used to marry their secretaries but are now marrying other executives. On average, we are getting married later leading us to the workplace as natural spot to meet someone. There is the rise of assortative mating where people choose a spouse similar to themselve ..read more
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Avoiding AMT on ISO stock options if your company’s stock drops
KB Financial Advisor Blog
by Jim Brightman
2M ago
If the value of your company’s stock declined significantly after you exercised Incentive Stock Options (ISO), you may have a tax problem. Here is a strategy for avoiding AMT on ISO stock options when the stock price falls. Did you exercise and hold? A common strategy with incentive stock options is to exercise and hold your ISO stock options for over one year to get favorable capital gain rates when you sell your shares. You may may pay alternative minimum tax (AMT) for the year in which you exercise, you can recover some of the AMT in a later year through a minimum tax credit. Exercise and H ..read more
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Why married female founders should have slush funds
KB Financial Advisor Blog
by Jackie Kleinman
2M ago
Having your own stash of cash can strengthen your marriage. Most people would agree that communication and transparency are key tenets of any healthy marriage, but are there any secrets worth keeping from your spouse? What if the secret revolves around finances, a common cause of divorce? Today, we’re discussing why a married woman should have a slush fund — a stash of cash your spouse doesn’t have access to and may not even know about. It starts with gaining independence. Feeling autonomy over even a portion of your assets helps you take an active role in your finances, especially if you ten ..read more
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