This course addresses the issues that arise when an employer issues stock to an employee—but places restrictions on the employee's enjoyment and control of the transferred stock. It provides a practical examination of section 83 and important tax ramifications and considerations for employers and employees who transfer and receive stock that may be subject to a substantial risk of forfeiture. Topics covered include risk of forfeiture, restricted property transfers, section 83(b) election, advantages and disadvantages of the election, and more.
Upon successful completion of this course, participants will be able to:
- Cite the opportunities and complexities when designing a substantial risk of forfeiture
- Define the special rules arising under section 83
- Identify the varied circumstances where a substantial risk will or will not be found
- Determine when it is most advantageous to make a section 83(b) special election
- List the details for making a Section 83(b) election
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