By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
employee benefits & pensions
January 2025 - The Tax Adviser
REAL ESTATE
Seller beware: Repossessions in real estate installment transactions
Sellers financing a sale of real property are subject to gain recognition under Sec. 1038 if they repossess the property upon the buyer’s default.
TAX CLINIC
expenses & deductions
FOREIGN INCOME & TAXPAYERS
PRACTICE & PROCEDURES
COLUMNS
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
