Equity Comp Discovery Questions
What to ask, what to request, and what to watch for when a client says: “I have equity comp.”
Last updated: January 2026
Initial discovery questions
Understanding the grants
- What types of equity do you have? (ISOs, NSOs, RSUs, ESPP, restricted stock)
- When were the grants issued and what’s the vesting schedule?
- Do any grants expire in the next 2 years?
- Have you exercised any options in the past? When and at what price?
- Are you still receiving refreshers/new grants?
Tax situation
- Approximate total income last year?
- Have you ever owed AMT? Any AMT credit carryforward?
- What states have you worked in while holding the grants?
- Any capital loss carryforwards?
- Trading restrictions/blackout windows?
Goals and constraints
- Near-term liquidity needs (home, tuition, debt payoff)?
- What percentage of net worth is company stock?
- Planning to stay at the company long-term?
- Comfort level holding concentrated positions?
- Any non-public info affecting ability to trade?
Red flags to watch for
| Red flag | Why it matters | Action |
|---|---|---|
| ISOs expiring within 90 days of job change | Loss of ISO treatment if not exercised | Model scenarios immediately |
| Large ISO spread + high income | Significant AMT exposure | Calculate AMT crossover point |
| >50% net worth in company stock | Concentration risk | Discuss diversification strategy |
| RSU vests with ~22% federal withholding + high bracket | Client will owe additional tax | Recommend estimated payments / higher withholding |
| Multiple states worked during grant period | Multi-state allocation complexity | Engage tax specialist / model allocations |
Documents that reveal hidden issues
- Form 6251 (AMT): look for AMT credit carryforward.
- Form 8949: cost basis adjustments often indicate prior RSU/ISO activity.
- Prior year W-2 Box 12 Code V:NSO income included.
- Form 3921: ISO exercises and holding period tracking.
- Supplemental 1099-B: the real cost basis details for RSUs.
Ask to see the stock plan portal, not just PDFs. Portals often show pending grants, hypothetical values, and details that don’t make it into static reports.