Hi Wolfgang/all,
While I definitely echo what John has mentioned about having a tax
professional that has experience preparing tax returns with stock
options review the situation and your accounting setup, I will also note
how helpful it is when a tax client is actually interested enough in how
the relevant accounting rules works to assemble the necessary
information correctly. The difference between working on a tax return
for a "shoebox client" and a client that is organized is the frequently
the difference between a good workday and a bad one...
Wolfgang: did your company provide you with a form 3922 or form 3921 for
your stock options? https://www.irs.gov/forms-pubs/about-form-3922 &
https://www.irs.gov/forms-pubs/about-form-3921
Another thing to think about is whether those stock options that are
vested & distributed annually show up as compensation on your W2 -
https://www.irs.gov/forms-pubs/about-form-w-2
Brad
On 4/4/23 12:26, john wrote:
The whole bucket of deferred compensation is really complicated and how you
account for it is tied up in tax law. If the value of the options, stock plan,
retirement plan subsidies, and whatever else is large enough to matter to your
tax returns you really, really need the help of a licensed accountant with
direct experience with the types of deferred compensation you get. Ask your
colleagues for recommendations.
Regards,
John Ralls
On Apr 4, 2023, at 11:14 AM, Murugan Muruganandam<m.muruganan...@hotmail.com>
wrote:
Employee stock options are normally not taxed until the vesting is done.
Restricted Stock Units (RSU) has a different mechanism though
What is your objective of this accounting? if you can detail then there are
couple of ways to account for the same
Saludos Cordiales
Murugan
________________________________
From: gnucash-user<gnucash-user-bounces+m.muruganandam=hotmail....@gnucash.org> on
behalf of Stan Brown<the_stan_br...@fastmail.fm>
Sent: Tuesday, April 4, 2023 2:06 PM
To:gnucash-user@gnucash.org <gnucash-user@gnucash.org>
Subject: Re: [GNC] Company plan for stocks and stock options
On 2023-04-04 10:40, Wolfgang Paul Rauchholz wrote:
Fairly new to gnucash and not a finance export, I want to run all my
personal finances with this great tool.
I installed 5.0 by compiling it under fedora core 37.
I started adding normal daily expenses and all look fine.
One of the doubts I have is how do I correctly add a company plan for stock
options and stock plan that get vested/distributed every year. As I don't
buy them there is no cash leaving my bank account.
The options and stocks are part of your compensation as an employee,
right? As such, the accounting would be similar to your accounting for
your paycheck.
Your paycheck (ignoring tax withholding) is
Debit: Cash or Bank account
Credit: Employee income
The stocks would be
Debit: Stock in Company X
Credit: Employee income
and similarly for the options. With stocks and options you'll want to
know number of shares and share prices so that you can compute gains and
losses when you sell them. If they aren't fully vested you will want to
note the vesting date as well.
You'll probably want to have separate accounts for stocks in the company
and stock options. To simplify computing your income tax, you may want
to have separate income accounts for income in money and income in
securities; they could both be subaccounts under an Employee Income account.
The usual disclaimer: I don't know your tax situation or any legal
requirements for how you may need to account for all of this.
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com
_______________________________________________
gnucash-user mailing list
gnucash-user@gnucash.org
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
_______________________________________________
gnucash-user mailing list
gnucash-user@gnucash.org
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
_______________________________________________
gnucash-user mailing list
gnucash-user@gnucash.org
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
_______________________________________________
gnucash-user mailing list
gnucash-user@gnucash.org
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
