Craig Day authored an article in Oregon Business magazine's February issue titled "Hidden Tax Gem for Privately Owned Companies." The article discusses new Section 83(i) of the tax code that allows private companies to offer rank-and-file employees the opportunity to defer income tax on stock options or RSUs for up to five years if certain requirements are met.
Private companies that traditionally use other types of equity may want to reconsider and offer stock options and restricted stock units instead. And private companies that have traditionally offered equity compensation to a more limited group of employees may want to consider expanding the program to include more employees to take advantage of the new deferral opportunity.
Our Tax Team recently launched a digital hub to keep readers informed on how the tax reform affects a variety of businesses and trusts and estates planning. See how it might impact you.
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