Code Sec. 83 and 83(b) Elections: Tax Planning for Closely Held Businesses (Completed)

Date: Wednesday, June 20, 2018
Instructor: Steven G. Siegel
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
2 hours Tax Planning for CFP

Master Rules for Transferring Stock to Employees

This two-hour CPE webinar provides a practical examination of Code 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.

Transferring stock to employees is often a great business move, but making the Code Sec. 83(b) election could turn it into a great tax move as well for both the employee and the employer. Moving income from ordinary income to capital gains for tax treatment is a desirable tax planning goal. When a business transfers stock to an employee as compensation and includes conditions on the transfer, the value of the stock may not be immediately treated as compensation to the employee or deductible by the employer. When the conditions are satisfied, the stock is then income to the employee. A Sec. 83(b) election allows the employee to report compensation income on the value of the stock when received, and then allow a future sale to be treated as a capital gain. The election can be beneficial to both employer and employee. But there are potential pitfalls and recordkeeping and filing hurdles that must be navigated to ensure that the election is successful.

Presented by noted tax planner, author and educator, Steve Siegel, J.D., LL.M., this program will help closely held businesses and their advisors navigate the potential minefields and understand the concept of a substantial risk of forfeiture in light of regulations issued in 2014. Siegel, an outstanding speaker and presenter, will provide practical explanations and tips on this important topic, so you can advise your clients with confidence.

All accountants, tax attorneys and advisors who work with closely held business will benefit from this insightful webinar. Your program materials will include a comprehensive and detailed outline prepared by Mr. Siegel. To reinforce your understanding and get help on your most pressing issues, you will have opportunities to submit questions directly to Mr. Siegel.

Who Should Attend
Accountants, tax attorneys and advisors who work with closely held businesses

Topics Covered

  • What Is a Substantial Risk of Forfeiture? (Including the 2014 Regulations)
  • How Are Restricted Property Transfers Taxed?
  • The Section 83(b) Election — Elect to Pay Tax When the Transfer Occurs
  • The Tax Consequences of Special Situations Involving Stock Options, Restricted Stock Awards, and Partnership Interests in Profits and Capital

Learning Objectives

  • Develop a solid base of knowledge regarding Code Section 83
  • Understand the substantial risk of forfeiture when transfers of stock are made to employees

Level
Intermediate

Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of federal income taxes

Advance Preparation
None

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