Succession planning is a critical aspect of managing small, closely held businesses, as the unexpected departure of a key leader can significantly disrupt operations and challenge the business's legal...
Entering into a letter of intent for an office lease agreement? Consult our playbook for valuable key provisions, alternative language provisions, and guidance for both landlords and tenants. Download...
In the complex world of M&A transactions, transition services agreements (TSAs) serve as critical bridges between deal closing and operational independence thus creating stability during organizational...
This practice note covers key legal and regulatory issues to evaluate, questions to ask, and documents to review in medical device or diagnostic technology deals, including M&A, investments, financings...
Publicly traded companies can offer their employees access to purchase employer stock on a discounted basis, using an employee stock purchase plan that complies with I.R.C. § 423. These plans are broad-based programs that, during an “offering period” (typically six months), collect after-tax contributions from participating employees and apply the money to buy discounted company stock on an identified date. Plans have a $25,000 calendar year per-employee limit and can offer up to a 15% discount without taxing the employee (at the time the stock is allocated). The stock purchase price is based on the traded value of the stock at the beginning or end of the offering period. Employees who hold the stock for at least a year (and at least two years from the grant date), enjoy treatment of gain on the sale as a long-term capital gain subject to the lower long-term capital gains tax rates. Otherwise, any gain is taxed as ordinary income.
Read now »
Related Content
Practical Guidance Updates Featuring the latest updates from your Practical Guidance account.
PRACTICAL GUIDANCE CUSTOMER EMAIL EDITION ON THE WEB
Experience results today with practical guidance, legal research, and data-driven insights—all in one place.Experience Lexis+
* The views expressed in externally authored materials linked or published on this site do not necessarily reflect the views of LexisNexis Legal & Professional.