Kevin Brady, CFP®

IRC Section 1202 provides one of the most powerful tax benefits in the U.S. Internal Revenue Code (IRC) to entrepreneurs and investors. Section 1202 provides an exclusion from taxation to a qualified investor of up to $10-15 million of capital gain or 10 times the stockholder’s adjusted cost basis, whichever is greater, upon the sale of Qualified Small Business Stock (QSBS). Why is the range of potentially excluded capital gain between $10-15 million? A look back at past and more recent legisla

Section 1202 – An Overview In a previous post, we discussed the historical context, investor/corporate qualification requirements, and common investor issues faced by holders of Section 1202 stock, more popularly referred to as Qualified Small Business Stock (QSBS). IRC Section 1202 allows qualified investors to exclude from federal income tax the greater of: $10-15 million of realized capital gain, or 10 times the stockholder’s adjusted cost basis, upon the sale of QSBS in a calendar year, dep

As a BigLaw partner, the demands of client work often leave little time for your own personal financial planning, so it’s not uncommon to feel underprepared when it comes to retirement. The good news is, we can help. Just as your clients rely on your expertise to make critical decisions, you can rely on us to guide your own retirement planning. Through our experience working with many BigLaw partners preparing for or currently in retirement, here are six key areas to consider. Clarify Your Idea

RSUs are a form of compensation issued by employers to employees in the form of company equity, or shares. RSUs tend to be most common among mature public companies, particularly in tech and healthcare, given the relative convenience and popularity of them with employees. In addition, while startups and earlier-stage private companies tend to use incentive stock options (ISOs) and restricted stock, public companies often find these to be too expensive to offer to rank-and-file employees. RSUs a

Self-employed individuals have multiple options to save for retirement and invest in a tax-efficient manner. One of those options, the Solo 401(k), can be particularly attractive to entrepreneurs running their own business, including those with both a 9-to-5 corporate employer and a “side-hustle” that earns them additional income. What is a Solo 401(k)? A Solo 401(k) plan, also commonly referred to as a solo-k or uni-k, is just like any other 401(k) plan, but is designed to cover a self-employe

As a partner in a private equity (PE) firm, you have a financial interest in the fund that comes in two parts: a capital interest and a carried interest. The capital interest grants you important ownership and distribution rights, but it does not have much potential to increase in value. The carried interest, on the other hand, is a speculative investment that could be worth multiple times its initial value if the fund is successful. Given these attributes, carried interest can be an attractive

All of today’s largest, blue-chip companies began as the small start-ups of yesterday. Some created entirely new industries, like Google and Netflix, or drastically altered them, like Tesla and Rivian. Most, if not all, grew to become the names we recognize today through equity-based compensation, enriching their founders, executives, and early employees alike (along with investors). A key part of equity compensation, particularly for earlier stage companies, is incentive stock options (ISOs).