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What is a Stepped Up Basis? Cost Basis of Inherited Stock and Other Assets

Darrow Wealth Management

You’ll need to fill out paperwork with the custodian if there isn’t a financial advisor managing the accounts. Similarly, interests in a closely-held business will also need a professional valuation. Darrow Wealth Management is afee-only financial advisory firmand full-timefiduciary.

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83(b) Election: Tax Strategies for Unvested Company Stock

Darrow Wealth Management

For founders, employees, and executives with stock-based compensation, an 83(b) election can be a powerful tax planning tool. When you make an 83(b) election, you’re opting to pay tax on unvested shares now, instead of when the stock vests. It can also preclude some tax planning strategies down the road.

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Selling a Business? Brokers Share Tips on How to Maximize the Sale Price

Darrow Wealth Management

Make your business more sellable later by getting advice now Business brokers often recommend getting a valuation done years before expecting to sell the company. Sellers also need to work with a broker and their advisors to understand a typical deal structure so that they can maximize their cash at closing.”

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Should You Exercise Stock Options During a Pre-IPO Window?

Darrow Wealth Management

The upside of a well-timed exercise is clear: potential for significant tax savings and reducing the time you need to hold the stock to qualify for long-term capital gains tax rates. Unfortunately, for those tax savings to materialize, the post-IPO stock price at sale must be considerably more than the pre-IPO valuation at exercise.

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83(b) Election: Tax Strategies for Unvested Company Stock

Darrow Wealth Management

For founders, employees, and executives with stock-based compensation, an 83(b) election can be a powerful tax planning tool. When you make an 83(b) election, you’re opting to pay tax on unvested shares now, instead of when the stock vests. It can also preclude some tax planning strategies down the road.

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What You Need to Know about Restricted Stock Units (RSUs)

Harness Wealth

Private company RSUs If you have RSUs in a private company, the value of your shares is based on the current 409A valuation. A 409A valuation is an appraisal that must be produced by an independent third-party, and is meant to reflect the current fair market value of the company. Related reading: What are quarterly tax payments?

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Reddit IPO: Planning ahead for 2023

Harness Wealth

Reddit has its sights set on a $15 billion valuation for its IPO , but achieving that goal may prove challenging. However, Fidelity later reduced the valuation to $6.6 Before you rush to any decisions, book an Equity Tax Planning Session today. Tax services provided through Harness Tax LLC.