Deferred Fees - Tax Ramifications

If I contribute portions of my general contracting and development fees as equity, how are those taxed on the back end? As equity, so they are tax free if we refinance/hold and not sell? 

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Nov 18, 2021 - 4:13am

For the company, they are taxed immediately for income taxes purposes, thus creating a deferred tax liability (future taxable income).

For an individual, taxes on equity (if vested) are paid on the excess of the fair market value over the cost in the year of the receipt. If the stock is nonvested, taxes are deferred until the equity vests.

Nov 18, 2021 - 10:30pm

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