

Offer HN: Free Tax Help from a Pro. - camz

Hi.<p>I'm a tax accountant.  I'm a CPA, an Enrolled Agent before the IRS and a future attorney.  I've worked with the major accounting firms (PwC and KPMG) and I've created a profitable accounting firm within 12 months of opening its doors.  Plus, I'm 24 and I've saved companies like Pfizer and TIA-CREFF more than 30 million.<p>Now I'm an upstart throwing my hat into the ring. My technical partner and myself are experiencing the hardships and the highs from disrupting markets.  Its awesome.<p>I know how hard it is to get things done on a tight (nonexistent) budget.  So, I wanted to keep my promise to the Hacker News community from six months ago and offer my advice to anyone that might need it on anything tax or business related.<p>Sorry I couldn't do this sooner but its been an insane ride thusfar.<p>Original Offer: http://news.ycombinator.com/item?id=1837299
Help on Incorporations: http://cameronkeng.com/podcast-ep-1-incorporation/<p>You can email me directly at cameronkeng@gmail.com if you want to ask something privately.<p>Best,
Cam.<p>Ps...Can we bring back the "Offer HN" pass it along attitude back? I missed how the community was really trying to help each other so openly...
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daniel_solano
I have a question: I am receiving stock (not options) in a publicly traded
company for part of my compensation in a project. I believe that is considered
by the SEC to be restricted stock, so to sell it I will need to follow Rule
144.

However, as I understand it, from the perspective of the IRS, it is no
restricted as it is an outright stock grant with no vesting or other such
provisions.

So, given the above, let me lay out a scenario:

I earn 100 shares of the stock at a rate of $1/share. On the day that I
invoice for this stock, it is worth $1.50/share. After six months, when I am
able to sell the stock, I sell it at $2/share.

As best I understand it, under section 83(a), I have to report the full $1.50
as income on the day I receive it. Section 83(b) does not apply as it is not
restricted stock from the perspective of the IRS. As such, when I sell the
stock at $2, it is taxed as capital gains.

Is my understanding correct?

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camz
You're correct in your analysis. You'd be required to pay tax on the income
received based upon the value of the stock (the object received is always
going to determine the value or income you've received). A Section 83(b)
election doesn't apply in this situation because of the stock isn't restricted
under Title 26 of the United States Code.

Restricted in the tax code means that it is either (a) undeterminable in value
or (b) legal right to title or authority has not been transfered.

You seem to have a perfect understanding of the issue. =)

~~~
daniel_solano
Thanks for the confirmation. I appreciate your help.

