Stock Appreciation Right

Report a stock appreciation right as well as cash or stock received pursuant to a stock appreciation right in Schedule A. In addition, report your arrangement with your employer regarding stock appreciation rights in Schedule C, Part II. Report your spouse’s stock appreciation rights and related payments in Schedule A only. 

Stock Appreciation Right: Examples

For You

Schedule A

Report a stock appreciation right its value was more than $1,000 at the end of the reporting period, or if it produced more than $200 in income during the reporting period.

Block A: Provide the name of the employer and write “stock appreciation right.”

Block B: Report the value of the stock appreciation right by marking the appropriate column. If the stock appreciation right is “underwater” or if its value is otherwise difficult to determine, provide the following information in Block A: (1) grant price; (2) number of shares; (3) expiration date; (4) vesting status; and (5) for an unvested stock appreciation right, the vesting date.

For example: 

    Steamship Taxi Co. (STL) 
    stock appreciation right: 1500 shares 
    unvested, $6.43, vest 2/12, exp. 5/15

Block C: Write “cash” and the exact amount of income in the column labeled “Other Income” on the right side of the page. Mark the column labeled “None (or less than $201)” instead if (1) you received less than $201 in income or (2) you received income in the form of stock, rather than cash. Report any stock that you received as a separate line item entry, using the instructions in this guide for reporting stock.

Schedule C, Part II

You also need to report your stock appreciation right arrangement in Schedule C, Part II.

Terms: Describe what will happen to your stock appreciation rights (e.g., retention of stock appreciation rights, exercise of vested rights, forfeiture of unvested rights, or accelerated payout of unvested rights). If applicable, specify the timeframe in which these actions will occur and the form that any payout will take (e.g., cash or stock). In addition, report any anticipated grants of stock appreciation rights.

Parties: Provide the name of the employer as well as the city and state in which the employer is located.

Date: Provide the month and year in which you began participating in the stock appreciation right arrangement.

For Your Spouse

Schedule A

Report your spouse’s stock appreciation right in the same manner as described in the section titled “For You” above, except when reporting cash payments. The dollar threshold for reporting a spouse’s cash payment is $1,000 rather than $200. In addition, you do not need to provide the actual amount—simply write “spouse’s cash payment” in the “Other Income” column.

Schedule C, Part II

Do not report a stock appreciation right arrangement for your spouse in Schedule C, Part II.

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This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.