> 409B does not appear to impact the taxation of incentive stock options (ISOs), which in conjunction with the repeal of the alternative minimum tax, would make ISOs more valuable
So AMT is being repealed now?
Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
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Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#12The tax bill is generally geared to screw over tech. In particular, eliminating the state income tax exemption will severely impact anyone in California. Are you still happy with #resisting anything the administration tries to do? Still happy you're censoring conservatives? Still happy Damore was fired? Still happy with your endless virtue-signaling? Still feeling good about enforcing political correctness? Still wan…
Yes, I don't see how any of that has led to this. Hamfisted attempts at tax 'reform' were coming regardless of any actions taken to oppose the current administration. I don't see how you can claim that opposing the administration's actions lead to more things to oppose.
I have no idea who Damore is.
Using stupid terms like virtue-signaling is a sure-fire way to prove that your argument is without merit.
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#13> 409B does not appear to impact the taxation of incentive stock options (ISOs), which in conjunction with the repeal of the alternative minimum tax, would make ISOs more valuable So AMT is being repealed now?
I believe AMT repeal is a part of BOTH the House and Senate plans.
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#14Overall I think average comp full time employees at eaely stage startups will be a big beneficiary. They won't hit the exercise threshold, AMT will be gone, and ISO tax benefits and 409A valuation will remain. One problem I see is that the extended exercises that are popular these days convert from ISO to NQOs, so I wonder what that treatment will be like. Contractors lose some flexibility over NQOs, but imho they we…
Why do you assume average employees won't hit the cap? $100k isn't exactly a massive sum in tech.
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#15> 409B does not appear to impact the taxation of incentive stock options (ISOs), which in conjunction with the repeal of the alternative minimum tax, would make ISOs more valuable So AMT is being repealed now?
Yea, it's talked about very negatively by the president because it creates a lot of extra work, both for the IRS and tax attorneys.
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#16> 409B does not appear to impact the taxation of incentive stock options (ISOs), which in conjunction with the repeal of the alternative minimum tax, would make ISOs more valuable So AMT is being repealed now?
Yea, it's talked about very negatively by the president because it creates a lot of extra work, both for the IRS and tax attorneys.
I would think tax attorneys would appreciate more billable hours.
The 'postcard sized tax form' touted by the GOP left me wondering what the makers of TurboTax and other tax preparation software think about that specific proposal.
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#17> 409B does not appear to impact the taxation of incentive stock options (ISOs), which in conjunction with the repeal of the alternative minimum tax, would make ISOs more valuable So AMT is being repealed now?
Yea, it's talked about very negatively by the president because it creates a lot of extra work, both for the IRS and tax attorneys.
Surely, the fact that $31M of the $38M of tax he paid in 2005 was AMT had nothing whatsoever to do with it...
https://www.marketwatch.com/story/read-this-to-see-if-you-ow...
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#18> 409B does not appear to impact the taxation of incentive stock options (ISOs), which in conjunction with the repeal of the alternative minimum tax, would make ISOs more valuable So AMT is being repealed now?
Yes, which is sort of a shame. Frankly if you were serious about simplifying the tax code and reducing unfairness and asymmetry, you'd keep the AMT and throw out the existing income tax.
But whatever: the AMT is an issue for upper middle class taxpayers, and particularly ones (like tech employees, and most particularly startup employees) who see lots of their income in big chunks like stock grants and option exercises. Helping these people is sort of dumb, as they (we) are hardly hurting to begin with. But it won't break the economy either.
Honestly, the Senate plan is... not at all insane (and the House plan only slightly insane). These are relatively modest tax cut bills arriving at a time where the economy is growing and deficits are shrinking, which is exactly where you'd want them. [Edit, hoo boy did this statement the trigger the economics folks. This isn't a growth point, the metric here, which I thought I'd made clear, is "when they are least likely to mess things up". Passing this bill won't break the bank or make progressive reforms in other areas more difficult in the near term.]
After the last year... it's like a breath of fresh air. I still don't think this is Good Policy per se, but the very fact that our government isn't actively trying to make things worse is hopeful.
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#19The tax bill is generally geared to screw over tech. In particular, eliminating the state income tax exemption will severely impact anyone in California. Are you still happy with #resisting anything the administration tries to do? Still happy you're censoring conservatives? Still happy Damore was fired? Still happy with your endless virtue-signaling? Still feeling good about enforcing political correctness? Still wan…
We've banned this account for repeatedly violating the guidelines. This website is for substantive discussion—as in, actually saying something informative and not just chest-poking.
Re: Proposed Tax Reform Stands to Impact Equity and Performance-Based Compensation
#20Earlier quoted context omitted.
Yea, it's talked about very negatively by the president because it creates a lot of extra work, both for the IRS and tax attorneys.
I would think tax attorneys would appreciate more billable hours. The 'postcard sized tax form' touted by the GOP left me wondering what the makers of TurboTax and other tax preparation software think about that specific proposal.
The "postcard sized tax form" is essentially the same level of complexity as the 1040EZ, which already exists. See:
https://www.vox.com/policy-and-politics/2017/8/30/16219906/p...