Tax Strategies
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Posted on March 19, 2024 by Dan Pascone
Case Study: The Alternative Minimum Tax (AMT) and Equity Compensation (ISOs & RSUs)
Bob and Julia both work for fictional tech companies. Bob receives $100k worth of ISOs, and Julia gets $100k worth of RSUs. Their situations are identical outside of their ISOs and RSUs—they have the same vesting schedules and company trajectory, and they even have Goldendoodles named Quinn. Bob: The ISO Guy Bob is granted ISOs […]
Posted on March 19, 2024 by Dan Pascone
What is the Alternative Minimum Tax (AMT) and What You Need to Know in 2024
The Alternative Minimum Tax (AMT) is a separate tax system intended as a minimum floor to ensure that high-earners with extensive deductions pay a minimal amount of tax– either 26% or 28% on a calculated amount. Taxpayers with AMT exposure calculate their taxes twice: once under regular federal tax rules and then a second time […]
Posted on March 13, 2024 by Dan Pascone
Tax Implications of Equity Compensation in Tech: Navigating ISOs and RSUs
Equity compensation is the cherry on top tech companies offer to attract brilliant minds like yours and encourage them to stay for at least a few years. It’s like getting a slice of the company pie; if its value skyrockets, your slice gets sweeter, too. Today, roughly one-third of private and 40% of public companies […]
Posted on March 4, 2024 by Dan Pascone
What are Capital Gains?
Capital gains (noun): The profits from your investments when you sell them for more than you paid. For tech high-earners, capital gains matter profoundly due to three primary reasons: Liquidity Events: An IPO or company sale could result in significant capital gains, which, if not managed properly, can lead to a hefty tax bill. Properly […]
Posted on March 4, 2024 by Dan Pascone
Harvesting Tax Losses to Beat Capital Gains
Tax loss harvesting is a term that sounds like it should be buried deep in a CPA textbook, but it’s actually a very straightforward strategy every tech professional should have in their arsenal. It’s the financial equivalent of turning lemons into lemonade. When the market gives you a downturn, tax loss harvesting allows you to […]
Posted on February 27, 2024 by Dan Pascone
How to grow your wealth, not your tax bill
I speak with twenty-plus high-earning tech leaders in the sweet spot of their careers every week: They’re growing professionally, Making more money, And, painfully, paying Uncle Sam his taxes. For example, the average SaaS employee making $225,000 per year is paying over $68,000 every year in a no-state income tax state like Florida or over […]