Grant Date
Two Year Vesting Period Begins
Exercise Date
Vesting period ends and one-year holding period begins
Holding Period Ends
All conditions met – Grantee qualifies for lower Capital Gains Tax and no income tax on the bargain element.
Tax Brackets
Married, Filing Jointly

INCOME
|
REGULAR INCOME TAX
|
INCOME
|
LONG-TERM CAPITAL GAINS TAX
|
---|---|---|---|
$0-$20,550
|
10%
|
$0 to $83,350
|
0%
|
Over $20,550 but not over $83,550
|
12%
|
|
|
Over $83,550 but not over $178,150
|
22%
|
|
|
Over $178,150 but not over $340,100
|
24%
|
$83,351 to $517,200
|
15%
|
Over $340,100 but not over $431,900
|
32%
|
|
|
Over $431,900 but not over $647,850
|
35%
|
|
|
Over $647,850
|
37%
|
$517,201 or more.
|
20%
|
Scenario 1
Scenario 2
Scenario 3
Scenario 4
Not so fast.
Alternative Minimum Tax
How to avoid the Alternative Minimum Tax
Further Reading
Disclosures
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client’s portfolio. All investment strategies have the potential for profit or loss. Information presented is believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author/presenter as of the date of publication and are subject to change and do not constitute personalized investment advice.
A professional advisor should be consulted before implementing any investment strategy. WealthGen Advisors does not represent, warranty, or imply that the services or methods of analysis employed by the Firm can or will predict future results, successfully identify market tops or bottoms, or insulate clients from losses due to market corrections or declines. Investments are subject to market risks and potential loss of principal invested, and all investment strategies likewise have the potential for profit or loss. Past performance is no guarantee of future results.
Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s portfolio. There are also no assurances that any portfolio will match or outperform any particular benchmark. No content should be construed as an offer to buy or sell, or a solicitation of any offer to buy or sell any securities mentioned herein.