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Desires by Mikolay Suggests: Shop SMALL for BIG Impact!

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Shop SMALL for BIG impact!

November 23 through November 27, 10 a.m.-6 p.m, Daily

 Desires by Mikolay is full of wonderful Holiday gifts for everyone on your list. Shop to benefit the Mount Kisco Interfaith Food Pantry 11/23 – 11/27 in store, online or by mail order and guests will receive 10% off their purchase, knowing an additional 10% will be donated to help those who are food unstable.

Skip the malls and shop local on Black Friday (11/26) with their Holiday Open House! Guests will enjoy craft cocktails, fine wine, small bites and festive music while they shop! Bring your friends and family for a fun day celebrating ’the Season of Giving’.

Awarded Equity In Your Company? 5 Key Financial Considerations

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As we approach the end of the year, bonuses and tax planning are at the top of many employees’ minds.  Without proper planning, equity compensation grants can seem like a double-edged sword. On the one hand, the equity grants you’ve been awarded represent the potential for significant wealth. On the other, they may have a range of complex financial and tax planning considerations. So, what should you be thinking about when managing your equity compensation?

Here are five important things to consider when strategizing with your team of professional advisors on how to manage your equity compensation grants.*

1. Make sure you know what kind of equity grant you’ve received.

Knowing what kind of equity grant you’ve been awarded will help you understand when and how you may owe taxes. Nonqualified stock options (NQSOs) are a common type of equity grant that are awarded at a pre-determined exercise price, also known as the strike price. Other types of equity compensation may include incentive stock options (ISOs), restricted stock units, and performance shares.

2. Keep track of when your equity compensation grants vest.

The vesting period defines the amount of time you must hold the equity grant before it vests and generally is no longer forfeitable. Typically, the equity grant will vest over a period of time, achievement of performance goals or a combination of both.

3. Understand the tax consequences of your equity compensation grants.

NQSOs do not qualify for special tax treatment so the spread between the strike price and the fair market value (FMV) of the stock at the time of exercise is considered ordinary income subject to federal, state, and local income taxes and payroll taxes. ISOs do not generally result in taxable income when they are exercised, but they may result in ordinary income or capital gain at the time the shares are sold depending on how long the shares have been held. However, the spread between the strike price and the FMV of the stock at the time of exercise may be considered income for Alternative Minimum Tax (AMT) purposes.

With restricted stock units or stock performance awards, you are generally subject to ordinary income tax when the equity grants vest.  The type of equity grant and terms of your company’s  plan will determine when and how it is settled and taxed. 

4. Determine whether a section 83(b) election makes sense for you.

If you make a section 83(b) election, you recognize taxable income in the year the equity award was granted, rather than in the year it is no longer subject to a substantial risk of forfeiture. Typically, a section 83(b) election can only be filed in connection with the grant of certain types of equity awards, such as, restricted stock and performance shares. The section 83(b) election needs to be made within 30 days of receiving the equity grant. If you choose to make a section 83(b) election, you will recognize ordinary income on the excess of the FMV of the equity award at the time of grant over the amount paid, if any. By making an 83(b) election, you have the potential of reducing your overall tax paid if your company grows. When you eventually sell the shares underlying your equity award, you may recognize capital gain or loss. Assuming you sell the shares more than one year after grant, any gain would be treated as a long-term capital gain, which is taxed at a lower rate, than ordinary income. 

5. Find out if your shares qualify as Qualified Small Business Stock.

You may be able to exclude up to 100% of any gain from the sale or exchange of qualified small business stock (“QSBS”) acquired after September 27, 2010 and held for more than five years.  The maximum amount of gain excluded is generally allowed up to $10 million or ten times the cost of the stock. The five-year holding period is for shares–not options–so if QSBS treatment is a future possibility, exercising options early and along the way may make sense. It may also be useful to negotiate an accelerated vesting schedule to start the clock on the holding period. QSBS rules are complex and include some key requirements for taking advantage of this exclusion, so consulting a tax advisor for guidance is advisable.

Key Takeaways

Deciding how to manage your equity grants can be a complex undertaking, especially if they are a significant component of your compensation package and your company stock represents a large portion of your overall wealth. Understanding the financial and tax implications of your equity compensation–and how they impact your comprehensive wealth management strategy–is critical. Working closely with your professional advisors–including your CPA, attorney, and a financial advisor who understands the nuances of equity compensation plans–can help you create a customized plan for achieving the future you envision for yourself and your loved ones.

About the Author

Richard Bloom, CFP® is a Financial Advisor, Dedicated Equity Plan Specialist with The MayerGelwarg Group at Morgan Stanley. As a Dedicated Equity Plan Specialist, Rich utilizes a unique set of skills to help clients who receive compensation benefits in the form of company stock. His deep understanding of the tax ramifications surrounding stock awards and grants qualifies Rich to work cohesively with clients’ CPAs to develop long-term, tax efficient diversification strategies. He can be reached by email at Richard.Bloom@morganstanley.com or by telephone at (212) 893-7597.

* Strategies are subject to individual client goals, objectives, and suitability. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. Only US federal income tax information is provided herein, and other taxes may apply depending on an investor’s particular circumstances. Investors should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.  

© 2021 Morgan Stanley Smith Barney LLC. Member SIPC.

CRC 3754886 09/2021     

A Community Treasure: Carolyn Vento, Master Hair Colorist at the King Street Salon

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Carolyn Vento is a master hair colorist in much the same way your favorite artist is a master musician, painter, or sculptor. There are many who make a living doing what they do, but there are few who command the respect of the masters of the form. Vento likes to joke that hair is her canvas, but she’s right. Her 300-plus clients from all over Westchester and New York City seem to agree.

King Street Salon is owned by Vento’s sister, Rosemary Filancia, and her brother-in-law, Charles Fremolaro. Vento has been working with hair professionally for 37 years, and has an even longer history in the business. Her father was also a hairdresser. “I was eight years old, doing roller sets,” she said. Since her time at the family business, Vento has trained at the renowned Vidal Sassoon Sassoon Academy and has been certified by the American Association of Haircolorists. But Vento doesn’t rest on her laurels. When she’s not at work she’s at home watching new hair coloring tutorials on YouTube. “I learn from my assistant every day,” says Vento. With King Street Salon, you’re not just getting all the experience, you’re getting the lifelong pursuit of perfection.

Vento’s dedication is time consuming. “I work six days a week, 12 hours a day. What’s the alternative?” she says. You can expect to see her in the salon starting at 6:30 a.m., and you can expect her to still be there twelve hours later. After finally taking a much needed vacation, she said, by the second day, “I wished I was home.” Her dedication is unmatched. “My clients are my family. If they want to come in at 9 at night, I’ll do it.” All of Vento’s over 300 clients have her cell number, and that’s the only way she’d have it. It goes beyond merely running a business. Vento is part of the fabric of her community, and she knows it and takes it seriously.

Vento makes dreams come true in her own little corner of the world, and she’s fueled by it. Not only is it in her blood, it’s in her heart.

“I believe every merchant has the responsibility to serve the community in any way they can,” she says. This thought was running through her mind during the early days of quarantine when King Street Salon was shut down. Vento wondered what she could do to serve her community and to put food on her assistant’s table, when the idea came to her. If she couldn’t have people in her salon, she could do the next best thing and bring the salon to them with portable hair-coloring kits that she could drop off at her customer’s houses. It wasn’t as good as the real thing, but as Vento said, “It put a Band-Aid on the problem,” one that their hairdressers would thank her for later. 

“I made 147 kits, and did 147 tutorials for husbands and kids,” says Vento. The kits were a huge success, and Vento put in the effort to ensure that they were applied correctly. She would make five tutorials a night for whichever relative or friend happened to be acting as her proxy. The kits were successful in large part due to the Chappaqua Moms Facebook group. All of King Street Salon’s business comes in through word of mouth, and with the support of a large group, businesses like Vento’s can really flourish. And of course it helps that no one has a bad thing to say about her.

The affection between Vento and her customers is mutual. 

“I love this town,” says Vento. Growing up, she had lived above one of her father’s salons in Armonk. She returned to the area in 2012, leaving behind a highly successful salon in the East Village. Now, her former customers in Manhattan make the journey to Westchester to have Vento work her magic.

Vento is not only good at what she does, she really loves it. She adores what she’s able to do for her customers. She does it for that moment when, “A woman looks in the mirror and purses her lips, and for that split second she feels like a supermodel.” Vento makes dreams come true in her own little corner of the world, and she’s fueled by it. Not only is it in her blood, it’s in her heart. “I eat it, I drink it, I sleep it,” says Vento. It’s her whole life, and that’s the way she wants it. From the procedure itself to the customer’s reaction at the result, Vento is enthralled. After all, she must be worth every penny to bring city slickers to the suburbs.

Wallauer Paint and Design Centers Celebrates 100 Years of Beautifying Westchester Homes

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Edward Klein, CEO, Wallauer

For more than a hundred years, customers throughout Westchester have turned to Wallauer Paint and Design Centers to help revamp their homes. The fourth-generation family-owned business offers an extensive selection of paints from Benjamin Moore, specialty products and accessories from Ace Hardware, window treatments from Hunter Douglas, designer fabrics and wall coverings, area rugs, and has 15 stores across Westchester, Putnam and Rockland counties. 

Considering that 20 percent of most new businesses fail within the first year and that number increases to almost 66 percent after ten years, according to the US Bureau of Labor Statistics, what keeps both contractors and homeowners coming back to their local Wallauer store? The answer can best be summed up by the company’s Chief Operating Officer Edward Klein. “It really comes down to having a knowledgeable group of people who know their craft and provide excellent customer service. Then it is word-of-mouth recommendations from satisfied customers that Wallauer is the go-to place for home improvement locally.” 

Many of their employees are local and have worked for the company for a decade or more. When they hire employees, they are looking for people with a broad base of knowledge. Customers may ask about everything from painting projects, to lawn care to plumbing products, so the company looks for employees that can help homeowners with a multitude of products from start to finish. 

Spurred by the COVID crisis, New Castle and North Castle and surrounding towns are hot housing markets with an influx of new residents, many of them first time homeowners. “We can help people with anything they want to do in their homes ranging from the walls, the windows to the floors with premium high-quality products and even in-home color consultations,” said Klein. 

Wallauer offers home design services in six of their stores and offers Ace Hardware Departments in five. Every Wallauer Design department features window displays from Hunter Douglas Window Fashions, specializing in motorization and full house automation of blinds and shades. Designers featured in top shelter magazines including fabrics from Robert Allen, Kravet, Fabricut and Kasmir and top wallpaper brands such as Schumacher, Thibaut, Nina Campbell and Candice Olson are also available. 

The company prides itself on offering products that you wouldn’t find in a big box store. Klein points out Benjamin Moore Paints as a prime example. Owned by billionaire Warren Buffet, the paint is only sold in independent home improvement stores. “Would Home Depot or Lowe’s like to sell Benjamin Moore? I assure you they would,” quips Klein. In fact, the company is the largest Benjamin Moore paint, hardware and decorating retailer in Westchester, Rockland & Putnam. 

They also have a long-standing relationship with the paint company spanning a hundred years when company founder Clarence Rudolph Wallauer opened his first Wallauer store in White Plains in 1921. The company initially had a strong focus on paint and wallpaper coverings but over the years their product line expanded and diversified as did the company’s footprint with 15 stores in the county ranging from the largest store in White Plains to popular ones further north such as the Carmel and South New Rochelle locations.

The Challenges of COVID

Like every other business, Wallauer has been affected by the COVID crisis. Luckily, they have seen their business grow 20 percent in the past two years but recruiting employees and maintaining stock has been challenging. “There are supply chain issues all over the housing market with fulfillment but we do have product and warehouses to store our stock,” notes Klein.

Additionally, the customer base has changed dramatically throughout COVID.  Prior to COVID, 75 percent of their customers were contractors and 25 percent were homeowners. One year into COVID, the customer base shifted to 75 percent DIY homeowners so the importance of having knowledgeable staff who could explain projects to first time homeowners was a key differentiator for the business.  In addition, they had to enhance their online focus with curbside pickup and fulfillment of mobile orders. Currently, their customers are 60 percent contractors and 40 percent homeowners. “Many of our customers didn’t even know about us but once they come here, they’d rather go to us than a big box store. The pandemic has shown people the value of making investments in their homes,” notes Klein.

Giving Back to The Community & Customers

As a long-standing local business, Wallauer has also contributed to The Pink Fund, a non-profit breast cancer organization that provides 90-day non-medical cost-of-living expenses to breast cancer patients who are in active treatment. This year marks the fourth year in a row that Wallauer has supported the organization. The company cares greatly about the communities and customers they serve. They match every donation made at the point of sale by customers and to date have donated over $15,000. 

In addition, to celebrate their 100th anniversary and to thank long time customers as well as new, a $100 gift certificate will be awarded to one shopper in every Wallauer store every month through December 2021. To register for the drawings, visit www.wallauer.com/100-years/. In addition, Wallauer will offer a “buy one paint sample, get a second one at ‘100%’ off” throughout the year.  Sprucing up your home in time for the holidays has never been easier.

The Beauty of Coworking Inside the New Westchester Business Center at Chappaqua Crossing

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Covid19 created a lot of new paradigms, and one that probably sounded pretty good was remote working from home. Skip the arduous daily commute, why didn’t anyone think of this before? Then reality set in. Kids interrupting zoom calls, the landscapers demolishing any semblance of quiet, and the dog thinking your new schedule revolves around her–the chaos was far from conducive. A readjustment became necessary, and the tweak Westchester Business Center has been offering for the last 18 years as a full-service professional workspace gave a much-needed boost for White Plains. And very recently, Chappaqua has started to get the same lift.

 “We came in to save the day,” said general manager Kris Saljanin. 

The WBC just held its grand opening on September 29 at Chappaqua Crossing, and the 29 offices spaces, 10 co-working spaces, and three conference rooms are ready to go!  “This is a fully functional facility that is equipped to accommodate your day-to-day business,” said Saljanin. “There’s a receptionist, a conference room, a meeting space; we can accommodate it all.” 

It’s a big step up from those who use Starbucks to set up daily–especially if the wifi goes out. “That’s where the co-working comes into play,” said Saljanin. “You don’t need full time periods, but somewhere to hang your hat for a short period like for a day or a month.”

An open space environment, clients may drop in to catch up on emails, phone calls and paperwork. Even so, WBC is never in a rush to get anyone out the door, and coworkers can come to like it so much that they opt for a more permanent lease.

However, a longer haul doesn’t leave occupants feeling stuck because three, six and 12 months are the standard increments. “Traditional office space requires much longer leases–often 10 years for the type of building we are in. Our clients get access to a Grade A building with very flexible lease terms,” said Saljanin.

Excess space and an overabundance of service does not accrue for the office holder either, according to Paul Puleo, who is a WBC investor and an occupant (or member).

 “If you’re a small business, and you have your own suite somewhere, you’re carrying a lot of things you don’t need to carry,” said the Chappaqua resident. “You don’t need a conference room every day, you don’t need an assistant to answer phones every day, and you don’t need to have insurance. Those things fall away when you’re here, and yet you got it all at your fingertips.” 

At the same time, the normal intricacies of a day’s work don’t get lost in comparison to trying to set up in the family den. “This is a class A business space for professionals,” said Puleo. “My home is not.”

Worse yet, the much less responsive help desk at your provider essentially puts the home bound in charge of any technological failings. The same is not true at Chappaqua Crossing. “We essentially have an outsourced technology company that monitors everything 24/7,” pointed out Puleo.

In fact, an IT person is onsite to monitor the wifi, copiers, printers, fax machines and the zoom set up. “All you do is bring your laptop or desktop, and we handle everything else,” said Saljanin.

The technology isn’t the only area in which WBC lends a strong helping hand either. “We do everything from answering the phones, cold calling, filing, mail delivery, running errands to the bank and filing at the courthouse,” said Saljanin. They’ll even take the wash to the laundromat! 

And the accommodations don’t end at 5 o’clock either. “Our location is open 24/7,” said Saljanin, and while WBC staff typically go home at by five, they will stay late if assistance is needed or if an event runs long.

The Bonus is a Comaraderie

The daily main event of community also overflows, and camaraderie is the spillage. “The office space allows you have a little watercolor talk,” Saljanin asserted. 

On the other hand, the inherent banter doesn’t just up the social agenda. “In White Plains, there is a lot of business between members. We have lawyers who are closing for real estate people. We have therapists of one nature guiding their clients to different types of therapists….

“We have financial advisors and insurance agents who work together,” revealed Puleo. “WBC creates a bit of a business community and networking.” 

Of course, every successful businessperson needs moments to dial back and daydream, and the looking glass is ever ready.

Overlooking the beautiful landscape along the Saw Mill River, the view is amazing too. With everything in place, Saljanin summed WBC up perfectly: “You come in, do what you do best, and we do the rest.”