3 ms·
I presume he is referring to 409a penalties. That's for options/deferred income. https://www.equityeffect.com/blog/409a-penalties/ https://www.equityeffect.com
by phonon 6y ago
I presume he is referring to 409a penalties. That's for options/deferred income.
https://www.equityeffect.com/blog/409a-penalties/ https://www.equityeffect.com/blog/409a-penalties/
(Possibly they were offering you options in your story--I'm not sure).
But if the company wants to give you stock directly--say for free! You would pay tax, as regular employment income, on the difference in value between what you pay (say $0) and the FMV.
- toss1 6y agoYup, exactly, it was indeed 409a penalties and options/deferred income. Also right, if it's straight-up realtime income, and you declare the full arms-length exchange / full & fair market value (minus whatever you paid or have as basis), and pay tax on that, you're probably ok (but IANAL, this is not legal advice).