Doctors who participate in a physician incentive compensation plan featuring a forgivable loan must be cautious in how they handle the tax reporting on their income tax returns, particularly if they bail out and have to pay a clawback to the employer. A recent decision of the U.S. Tax Court, Salloum v. Comm’r., T.C. Memo […]
In family law cases, executive compensation can be a source of income for support and alimony obligations, and sometimes it may be marital or community property. Many executive compensation packages, such as incentive bonuses, restricted stock, stock options, share appreciation rights, SRUs, and deferred compensation, are structured under the tax laws. Chapter 6 of Frumkes & Vertz on Divorce Taxation discusses many forms of executive compensation, with a guide to discovering hidden income in the tax returns.
Schank v. Comm’r of Internal Rev., T.C. Memo. 2015-235 (2015) Terry and Paula Schank were the owners of TMS&P Holdings, LLC, a Nebraska limited liability company that elected partnership treatment for tax purposes; and Twin City Roofing and Sheet Metal, Inc., a closely held C corporation, in which Terry Schank was employed full time as […]
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