Customer Reviews

Stock Options: An Authoritative Guide to Incentive and Nonqualified Stock Option

5 star:		(26)
4 star:		(3)
3 star:		(1)
2 star:		(4)
1 star:		(0)

 

 

I bought this book as a gift for my CPA. He liked it so much that he told his colleagues about it and they bought it too. I saw it listed as "recommended reading" by Cal CPA Online, posted at the California Society of CPAs. I later found that it's used as the basis for continuing education courses for CPAs.

The material is supported by countless references to the Internal Revenue Code, IRS Regulations, IRS private letter rulings, IRS Revenue Rulings. My CPA tells me that if ever audited by the IRS, you quote this book - giving the section of the tax law or other basis for why you prepared your tax return the way you did. It's the ultimate protection for option holders because an IRS agent can't dispute what CPAs call legal "cites" or legal "authority". I've learned from CPAs that it's an important reason why the book is so popular with tax attorneys and CPAs -- it reduces the amount of time they need to spend on tax research at $175+ per hour (because the book has done the work for them) and that makes it less costly for their clients.

IPOs. If you have options on a company that's about to make an IPO, this book shows you how to exercise UNVESTED options if your company's stock option plan allows it. Exercise unvested options and make a section 83(b) election (and how to make the election) if you expect substantial appreciation in the stock --- you end up with less ordinary income and MORE long-term capital gain.

I counted more than 30 examples in the book on just about any income tax question - reload options, using stock already owned to exercise options without having to pay tax, how to compare option packages offered by different employers, how to save taxes by converting ordinary income into capital gain, what makes a disposition of stock disqualifying and what does not and why it matters, how to compute the amount of income subject to tax on an ISO, that the basis in your stock is often different for regular tax purposes and alternative minimum tax and how to report this difference on your tax return in order to avoid the overpayment of AMT, several charts that accompany some of the examples on ISOs, what the AMT credit means and how it arises and that it can be used in future years to reduce the regular income tax, how to decide if it makes sense to exercise ISOs and hold the stock or to make a same-day sale, when it makes sense to buy the stock outright instead of exercising an option well before its date of expiration, how to report option transactions on IRS Form 1040.

I was shocked at the thinness of this book. Not including the Appendix and and intro, I count about 73 pages. Many of those pages contain tables and many of those tables were *very* simple re-hashes of the examples. I feel like I spent way too much money on this book.

It does a good job at explaining NQSOs and ISOs and all the quirks of each. When it got to the part I was really interested in "Two Tax Saving strategies", I found that while it does present some general ground rules and some examples, it ends up saying basically that it all depends on your situation. I half expected to read the proverbial "speak to your tax advisor about your specific tax situation."

If you want basic info about Stock Options, you can find that on the Web. If you want general advice about what to do with your options - exercise and hold; delay; etc., this will give it. If you want detailed advice and formula for figuring out what to do, get something else.

I've read every news paper article, taken several educational classes, and devoured water cooler gossip on how best to take advantage of stock options. This book sets the record straight on how to save your precious option $$ from tax erosion. It's tough reading, best done with pencil, paper, and calculator in hand, but worth every penny you spent!

I was preparing a client's return who had an ISO preference. His (former) employer is an NYSE listed firm. (Large HR and tax departments) I opened Mr. Pastore's book to check the calculation of this preference. In less than a minute, I determined that my client's W-2 was wrong (by over $150,000). Turned out that lots of other employees' W-2s at this company were also incorrect.

This book saved my client a bundle, and made me a hero.

This is the best $40 you'll ever spend if you have one client with employee stock options

I have a friend of mine, who was granted some stock options from his company. He was totally lost as to the consequences of the granting of the options. I did some research on the subject and my research pointed me into the direction of this book.

Both my friend and myself, were very impressed with the illustrations and ease of reading. Mr. Pastore gave several highly informative illustrations that were well thought out and easily explained.

I would recommend this book without reservation.

The book is a helpful starting point for people totally unfamiliar with employee stock options. However, it does not give any innovative strategies for handling the options. It is simply a good source of basic information. Not written for professionals but may be useful for the beginner. (Although it is not bad for a self-published work.)

Robert Pastore did really a great job in making available his extensive know-how in a relatively restricted number of pages. Without wasting my time it offers high value per page. The book delivers without any doubt to the promise: the non professional benefits from stock options at last! I never read a book on a complicated issue that clearly written. It is a book for the employee, but if I were a employer I would distribute the book together with granting the option rights: it simply multiples the value for the employee an thus for the employer! Robert: I am waiting for your next contribution to educating me on a complicated financial issue!

I've worked with a lot of executives who have been awarded stock options and this has immediately become my "go to" resource for information and reference. The book is clearly written and exceptionally organized. It's a "must read" for financial advisers who advise executives and compensation professionals inside any publicly traded company which is contemplating, or already has in place, an option program for executives and employees.

This book is the most efficient piece of writing on the taxation of stock options that I have read. I can extract more useful information with less effort than from any other source. The book explains the taxation of stock options in plain English. Anyone who has been granted stock options or who is an advisor to people with stock options should consider adding this book to his or her library.

If you are fortunate enough that terms like ISO's, AMT etc.have not only theoretical but practical meaning to you, then get this book! Study it, then get professional advise from live CPA - you will even be able to understand it. I wish I had the book before I went to CPA #1 - would save me a lot of time (= money). I am definitely going to save money next week when I see my tax lawyer #3.