Using Quicken to manage ISOs and RSUs?

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TexasTech
Posts: 10
Joined: Sun May 17, 2020 4:05 pm

Using Quicken to manage ISOs and RSUs?

Post by TexasTech »

Hello,

Does anyone use Quicken to manage ISOs, especially those that were early exercised? What about RSUs? It doesn't seem to support either, even in the latest version for Windows that I downloaded today.

I've read a few different workarounds that people are using but none seem great so wanted to see if the Boglehead community could make any recommendations?

Thanks!
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GerryL
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Re: Using Quicken to manage ISOs and RSUs?

Post by GerryL »

I never bothered documenting my RSUs in Quicken until they vested and the shares ended up in my brokerage account. Then they were just shares. One reason was that until they vested, I couldn't really touch them, so they didn't seem like real money.
Topic Author
TexasTech
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Joined: Sun May 17, 2020 4:05 pm

Re: Using Quicken to manage ISOs and RSUs?

Post by TexasTech »

Thanks, hopefully they show up with the right basis and tax implication that way.

Any thoughts on tracking the tax implications of ISO early exercises? It won't let you input a "Exercise Employee Stock Option" quantity that's greater than the amount vested on exercise date.
fabdog
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Location: Williamsburg VA

Re: Using Quicken to manage ISOs and RSUs?

Post by fabdog »

I used quicken to manage ISO and NSQ options from my employer

I am confused when you say it won't let you exercise "early", ie put in a quantity that is more than you currently have vested.

How are you able to exercise options that haven't vested yet?

I managed RSU's as GerrryL did... i entered them as shares received on date vested with their basis as of that date. It tracked fine

Mike
Topic Author
TexasTech
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Re: Using Quicken to manage ISOs and RSUs?

Post by TexasTech »

Early exercise of ISOs is a common tax strategy in the US. Here's a good writeup: https://blog.wealthfront.com/when-to-ex ... k-options/.

Essentially, you exercise at a low FMV and send 83(b)s to the IRS to memorialize the transaction within 30 days. If you leave the company before the early exercised options vest the company has the right to repurchase from you.

You don't actually take custody of the shares until the vest date, but you save a whole bunch in taxes. The primary downside is the risk that the shares, once liquid, are worth less than your tax burden, or they never become liquid at all. You typically only want to do this at a company you feel has a good chance at an exit (and when you can afford the cash outlay).
Topic Author
TexasTech
Posts: 10
Joined: Sun May 17, 2020 4:05 pm

Re: Using Quicken to manage ISOs and RSUs?

Post by TexasTech »

The reason I care about being able to input this way is for tax purposes, and not having to keep inputting shadow exercises once shares vest.

Basically I want to input the early exercise once and never worry about it again, while also having Quicken appropriately track the tax consequences.
fabdog
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Location: Williamsburg VA

Re: Using Quicken to manage ISOs and RSUs?

Post by fabdog »

Early exercise of ISOs is a common tax strategy in the US. Here's a good writeup: https://blog.wealthfront.com/when-to-ex ... k-options/.
Thanks for posting that. I did not understand that companies could allow that (ours didn't). But then we weren't a startup, this seems targeted at start up companies? the shares you exercise are pre IPO?

So yes, in your situation, Quicken is not going to allow you to track, quickest workaround I can think of is changing the vesting date.

Mike
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