83b tax election
83b election allows you to pay capital gains instead of ordinary income tax rates. has anyone in the HF space seen negatives / downsides as a result of this?
83b election allows you to pay capital gains instead of ordinary income tax rates. has anyone in the HF space seen negatives / downsides as a result of this?
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I’m not a tax professional and this isn’t tax advice.
You should also investigate what happens if the deferred compensation is never paid. You might reach the conclusion that in that case, you’ve paid the taxes up front and then if you don’t receive the compensation, you may not get a deduction. If that were true, then you get the benefit of better tax treatment if it works and a really nasty outcome if does not.
thank you. have you encountered a scenario like this? anything you had written into the employment agreement to get around this?
You should use a tax advisor for this. Your upside is you save $1k in fees. Downside you might end up in prison. Pretty obvious trade off imho.
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