This New Election Allows Employees to Defer Income from Exercising Stock Options or RSUs for Up To Five Years Using Section 83(i)

An employee who receives equity-based compensation may have to pay tax when they receive or exercise stock or options, but the terms of the grant (such as a vesting period) may not allow them to exercise the option and/or sell the shares until a later date, leaving the employee with a tax bill and no way to liquidate their options to pull together the cash to pay the taxes due. The new Section 83(i) election aims to resolve this timing difference.

May 2016 Client Bulletin

Our May client bulletin looks at C-Corps vs. S-Corps/LLCs when it comes to Qualified Small Business Stock, taxes on lottery and gambling winnings, and handling health insurance through divorce.