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This isn't an ordinary debt from a 3rd party; it's a contract with the company - they can put whatever terms and restrictions they like on that contract, includ
by allannienhuis 10y ago
This isn't an ordinary debt from a 3rd party; it's a contract with the company - they can put whatever terms and restrictions they like on that contract, including no other recourse for the debt other than proceeds of the sale of that stock, or it's forfeiture.
- scurvy 10y agoIf the company forgives the debt, doesn't the IRS treat that as income?
- allannienhuis 10y agoPossibly, But there's a difference between a debt being written off (uncollectable) and forgiven. There's also capital gains losses that might offset potential income; the accounting for all of these cashless transactions is complex - that's what the accountants and lawyers are for :P