The Mind Money Spectrum Podcast

#69. Uncover the unknown unknowns of cost basis to unlock real savings.

April 06, 2021 Aaron Agte and Trishul Patel Season 2 Episode 17
The Mind Money Spectrum Podcast
#69. Uncover the unknown unknowns of cost basis to unlock real savings.
Show Notes

This ain't your ordinary cost basis.

In this episode, Aaron and Trishul continue discussing cost basis. Aaron explains the math behind RSU and NQSO basis and why an ISO can have two different cost basis values. Trishul examines optimal gifting strategies. They also investigate how depreciation and upgrades can affect your home's cost basis, and how the step-up in basis on death works in community property versus separate property states. As Aaron tries to remember the nuances behind discounted ESPPs, they both realize the central point of the conversation: to turn unknown unknowns into known unknowns so that you are aware of when to be more careful.

Episode References

MMS #32. These estate planning tips can save you big time.
MMS #33. ISOs
MMS #34. RSUs
Graystone Advisor: RSUs
Graystone Advisor: Exercising ISOs
Cost basis facts for stock plans
How to avoid getting double-taxed on ESPP
Taxation of Employee Stock Options
Taxation of ISOs, NQSOs, and Restricted Stock
Gifting and Cost Basis
Depreciation Recapture
Step Up in Basis
Employee Stock Purchase Plans

Podcast Description

Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.