TITLE

Examining the Tax Advantage of Founders' Stock

AUTHOR(S)
Polsky, Gregg D.; Hellwig, Brant J.
PUB. DATE
May 2012
SOURCE
Iowa Law Review;May2012, Vol. 97 Issue 4, p1085
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article offers information on the tax advantage of stock of the founders. It mentions that the stock of the founders are tax advanced and enables executives to convert compensation income into stock appreciation taxed at rates for capital gains thus reducing tax by sixty percent. It adds improper treatment of the losses being the main reason for the tax advantage and stock as a partial move towards optimal treatment of losses
ACCESSION #
76165256

 

Related Articles

  • Be careful with incentive stock options. Bercovici, Paul // Fairfield County Business Journal;3/20/2006, Vol. 45 Issue 12, p6 

    The article focuses on the case of Jane Brown, a new employee at Multinational Corp., in which she is uncertain of any income tax implications associated with her participation in the incentive stock option (ISO) plan. It is stated that Brown will not be subject to regular income tax either at...

  • Executive stock-based compensation and firms’ cash payout: the role of shareholders’ tax-related payout preferences. Aboody, David; Kasznik, Ron // Review of Accounting Studies;Sep2008, Vol. 13 Issue 2/3, p216 

    We hypothesize that the structure of executive stock-based compensation helps to align managers’ payout choices with shareholders’ tax-related payout preferences. Specifically, stock options, which are not dividend-protected, can deter self-interested executives from using...

  • ANSWERS to your TAX QUESTIONS About investment income and loss. Farber, Lawrence // Medical Economics;2/20/2004, Vol. 81 Issue 4, p59 

    Responds to questions regarding investment income and loss in the U.S. Taxes owed on stock sale transactions; Reporting of stock transactions; Filing of schedule B; Capital gains tax on home sale.

  • Year-end investment strategies.  // Consumer Reports Money Adviser;Nov2014, Vol. 11 Issue 11, p11 

    The article presents tips on how investors could minimize their tax bite and tax payments for April 2015. Topics include the capital gains of investors, offsetting stocks that are sold for capital gains with the investor's other investment losses, and reducing gross income to an...

  • FEDERAL TAXATION OF INDIVIDUAL CAPITAL & LABOR INCOME IN THE UNITED STATES, 1978-2003. Caputo, Richard K. // Race, Gender & Class;2007, Vol. 14 Issue 1/2, p266 

    Taxable income from dividends, capital gains, and wages & salaries in the United States are examined in light of the major tax reform efforts of the Reagan administration in 1986 and that of the G.W. Bush administration in 2001. Since affluent citizens are more likely to benefit from capital...

  • 4.8 UK TAXATION FOR FOREIGN NATIONALS. Pilborough-Skinner, Janet // Investors' Guide to the United Kingdom;2012/2013, p260 

    The article discusses various aspects of taxation for foreign nationals in Great Britain as of 2012-2013. Topics discussed include basis of taxation such as residence, ordinary residence and domicile, types of domicile relevant to income tax (IT) and capital gains tax (CGT) and personal...

  • A Look inside the Black Box of Capital Gains Taxation. Hulse, David S. // Journal of Financial Service Professionals;Mar2012, Vol. 66 Issue 2, p46 

    The federal income tax treatment of individuals' capital gains is complicated. In addition to differing treatment for long-term versus short-term capital gains, gains are treated differently within the long-term group (e.g., collectibles gain versus gain on the sale of stock). This article...

  • Tax points. Haskew, Frank; Newth, John // Accountancy;Feb2003, Vol. 131 Issue 1314, p112 

    The article information regarding various laws and regulations on taxation. The FA 2002 amended section 42 of FA 1998 so that it now requires that taxable profit figures be computed in accordance with Generally Accepted Accounting Principles (GAAP). The article points to serious traps inherent...

  • Why shares pip property. Freeman, Peter // Money (Australia Edition);Nov2006, Issue 85, p36 

    The article focuses on the importance of considering taxation in choosing between investing in property or shares in Australia. Paying capital gains tax is required when buying stocks. Government taxes are imposed on property in the form of local council rates and water rates. The income...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics