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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55708
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I had a situation last year where my company was acquired

Customer Question

Hello, I had a situation last year where my company was acquired and all unvested stock and options vested upon the acquisition. Are there any alternatives/strategies to avoid having to report the entirety of gains in 2015 and thus be subject to a (much) higher tax bracket? Thank you for your time.
Submitted: 1 year ago.
Category: Tax
Expert:  Richard replied 1 year ago.

Good morning. My name is ***** ***** I look forward to helping you.

I see that no one has responded to your question. My presumption is that it's because once these stocks and options vest, you are required to report them into income in the year of vesting. There's really no alternative to that at this point other than to coordinate with the company regarding changing the vesting to a staggered vesting over the next years. Otherwise, now that it's 2016, the only thing I can suggest is to create additional deductions. At this point, you can still contribute the maximum contribution to an IRA at any time up to April 15, 2016. Depending on what other plans you have, this would be deductible and reduce your income and thus your tax obligation for 2015.

This is the part of my job I don't like...when the law is not in favor of my customer. But, I can only provide you information based on the law so that you can act on the best available information to you. ………..I wish I had better news, but can only hope you recognize and understand my predicament and don't shoot the messenger. I'm sorry!