Employees generally must recognize income upon the receipt of employer stock to the extent that the fair market value of the stock received is greater than the amount, if any, paid by the employee for the stock. If the employee is taxed on receipt of the stock, that could be a real problem, as he
Tax Me Now: Founder Stock and the 83(b) Election
By Bernadette T. Kasnicki on
Posted in Federal, Getting Started, Taxes
Of the countless details and decisions that the founder of a startup company is inevitably juggling as he launches his startup, one of the most important is making a timely Section 83(b) election. Under Section 83 of the Internal Revenue Code, an employee is not taxed on restricted stock received from an employer as…
Getting Carried Away With Carried Interest?
The debate over the taxation of “carried interest” has been percolating for years and the release of Mitt Romney’s personal tax returns in connection with his presidential campaign generated more wide-spread interest in the subject. And while the relatively preferential tax rates that fund managers pay on these investment profits survived the “fiscal cliff” budget…