4 ms·
If the company goes bankrupt, though, can't a bankruptcy trustee go after the employee to try to collect on that loan?
by Mrmcfeely8 11y ago
If the company goes bankrupt, though, can't a bankruptcy trustee go after the employee to try to collect on that loan?
- AndrewKemendo 11y agoNo, the non-recourse note is collateralized with the stock.
- Mrmcfeely8 11y agoHm, I thought IRS treated stock purchased with a non-recourse note as an option (since there's no risk to the employee). If that's true, then you can't take the 83b election. That is, unless you convert to a full recourse note, but then you're back to the employee cash liability thing again.
- Mrmcfeely8 11y agoInteresting discussion here (for some definition of "interesting"): http://www.proformative.com/questions/exercise-stock-option-promissory-note http://www.proformative.com/questions/exercise-stock-option-...