Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
One possibility would be to have your husband's employer give him company stock in lieu of a cash bonus. The company could then place a restriction on the stock saying that it could not be sold for a specified period of time (i.e. one year, five years, etc.). By doing so, your husband would not recognize income on the stock until the restriction lapses. At that time he would recognize income based on the fair market value of the shares.

If this is the route your husband and his company go, he may want to consider making what is called a Section 83(b) election. It is a little complicated, but it basically defers recognition of the appreciation of the stock when the restriction lapses. He would recognize income in the year the stock is received (this year), but if he expects the stock to appreciate substantially, it's not a bad idea. You should consult your tax advisor if you decide to do this.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.