Equity Compensation
How RSUs, ISOs, NSOs, ESPPs, and 83(b) elections are taxed — vesting, the AMT trap, qualifying vs disqualifying dispositions, double-trigger pre-IPO grants, QSBS planning, and multi-state allocation for movers.
11 articles
RSU Multi-State Allocation Explained: Workday Fraction Method
How RSU vest income is allocated across US states when you change state between grant and vest. Workday-fraction method, IRS guidance, CA + NY + 14-state grid.
RSU Trailing State Tax Explained: CA + NY After You Move
When you sell RSUs after moving states, your former state may still claim the W-2 portion. Learn CA FTB Pub 1004 + NY 14-day rule + Form 540NR / IT-203 filing.
83(b) Election Deadline 2026: 30 Calendar Days, No Extensions
Section 83(b) election must be postmarked within 30 days of grant — the Tax Court has rejected every late-filing excuse. Step-by-step filing guide for 2026.
Double-Trigger RSUs Explained: Pre-IPO Tax, IPO Day, and the 22% Trap
Most private tech companies grant double-trigger RSUs that defer income recognition until both time vest AND a liquidity event. The structure protects employees from owing tax on illiquid stock — but creates a multi-million-dollar single-day income event at IPO with a punishing supplemental-withholding gap.
ESPP Qualifying vs Disqualifying Disposition: Lesser-of Rule, FICA Exemption, and the Lookback
§423 Employee Stock Purchase Plans use a 'lesser-of' rule on qualifying dispositions that trips up most tax software defaults. Plus the FICA exemption that survives both qualifying AND disqualifying treatment, and how the 15% lookback discount produces ordinary-income recognition that exceeds the actual gain.
The $100,000 ISO Limit Explained: When ISOs Auto-Convert to NSOs
IRC §422(d) caps the aggregate fair market value of stock that can become first-exercisable in any one calendar year as ISO at $100,000 per employee. Anything above is automatically reclassified as NSO regardless of grant agreement. How to detect when you trip the cap and what changes when you do.
QSBS Exemption Guide: How Section 1202 Excludes Up to 100% of Founder Gain
Qualified Small Business Stock under IRC §1202 lets eligible founders and early employees exclude federal capital gains tax — up to the greater of $10 million or 10× basis per issuer — when selling C-corp stock held five years. The qualification tests, the 5-year hold, the $50M aggregate-asset cap, and which states refuse to conform.
RSU 1099-B Cost Basis Correction: Form 8949 Code B Walkthrough
Brokerages routinely report $0 cost basis on Form 1099-B for RSU and ESPP sales — even though you already paid ordinary income tax on the vest-day FMV. Without a basis correction on Form 8949, you pay tax twice on the same dollars. Step-by-step on the code B adjustment.
RSU Sell-to-Cover Explained: How Many Shares Disappear at Vest
Sell-to-cover withholds shares at vest to pay federal tax (typically 22% supplemental), Social Security, Medicare, and state. Why your net-share count is always less than you expected, the supplemental withholding gap, and when same-day-sale or cash withholding is the better choice.
RSU Tax Guide: How Restricted Stock Units Are Taxed at Vesting and Sale
Restricted stock units are taxed twice — once as ordinary income at vest, again as capital gains at sale. A complete guide to withholding, double-taxation traps, and the tax-smart way to manage your RSU grant.
Alternative Minimum Tax (AMT) Explained: Who Pays It in 2025
Understand how the Alternative Minimum Tax works, the 2025 AMT exemption amounts, income triggers, and strategies to avoid or minimize AMT liability.
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ISO AMT Calculator
ISO bargain element AMT preference, qualifying disposition path, 26%/28% AMT rates, AMT credit carryforward
83(b) Election Calculator
30-day election trade-off: tax now on grant FMV vs ordinary income at vest; break-even price + irrevocability warning
RSU Multi-State Allocator
Workday-fraction allocation of RSU vest income across multiple US states. CA + NY 14-day rule support.
RSU Trailing State Tax Calculator
Sale-time state tax when selling RSUs after moving states. CA FTB Pub 1004 source rule + NY 14-day rule.
Equity Relocation Planner
Stay-vs-move state tax comparison for unvested RSU shares. Trailing-state warnings included.