3 ms·
For founders, an 83(b) like election should cover that case, if your funds have never been liquid. But yea, this is tough. If you close all loopholes, it almost
by btown 7y ago
For founders, an 83(b) like election should cover that case, if your funds have never been liquid. But yea, this is tough. If you close all loopholes, it almost starts to look like a VAT on private investments per vehicle, which would disincentivize growth in so many ways.
- bretpiatt 7y agoBeing able to use 83(b) valuation would imply tax on book value which is not really an accurate measure of the value and would favor a whole set of structures and increase the amortization / accelerated depreciation / write-down of assets. Our current tax code, similar to a representative democracy , isn't good, it just may be the least bad of all the options out there.