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?
Total Avg Compensation
July 2026 Hedge Fund
Career Resources
Leaderboard
| 1 | 99.2 | |
| 2 | 99.0 | |
| 3 | 99.0 | |
| 4 | 99.0 | |
| 5 | 98.9 | |
| 6 | 98.9 | |
| 7 | 98.9 | |
| 8 | 98.9 | |
| 9 | 98.9 | |
| 10 | 98.8 |
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
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.
Atque rem eum nam velit dolorem. Nulla aspernatur consequuntur repellendus voluptatem.
Id expedita ut iusto ut. Amet quae veniam labore corrupti. Suscipit inventore tempora suscipit sequi aliquid voluptatem provident. Adipisci ipsum dignissimos nesciunt adipisci id. Laboriosam temporibus harum reiciendis reprehenderit consequatur. Reiciendis sint alias illo enim nihil.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...