*This generally is senior officers, directors, and shareholders with greater than 10% equity.
† Rule 144 is a regulation enforced by the U.S. Securities and Exchange Commission. The regulation provides an exemption that allows the public resale of restricted, unregistered, and control securities if a number of conditions are met. This includes how long the securities are held, the way in which the securities are sold, and the amount of securities that can be sold at a certain time.
§ Tax treatment of ISO stock transferred to charity before holding period requirements are met is not included. Please consult with appropriate tax or legal advisor on specifics.
** Difference between FMV at exercise and exercise price is an AMT preference item included in your AMT calculation. You may lose AMT preference item on contribution.
†† 60% of AGI deduction limit with a five-year carryover is permitted for charitable contributions of cash. Note: any short-term capital gains tax paid reduces value of gift to charity.
§§ Additional considerations are involved when gifting restricted stock. You may own stock acquired from equity compensation awards that, due to your status as an executive in the business or other factors, may have resale restrictions. Donating restricted stock may require due diligence by the charity prior to acceptance, as the gifting process can involve certain additional paperwork and regulatory filings.