Income Tax Treatment of SAFEs and Convertible Debt: Navigating Sections 1202 and 1045, Section 368, Section 83
Recording of a 90-minute premium CLE/CPE video webinar with Q&A
This CLE/CPE webinar will provide attorneys and tax professionals an in-depth analysis of the tax treatment and challenges of a simple agreement for future equity (SAFE) and convertible debt. The panel will discuss the typical structures of SAFEs and convertible debt, critical tax considerations for these transactions, navigating potential negative tax consequences for taxpayers, and the impact of Sections 1202 and 1045, Section 368, and other tax provisions.
Outline
- Overview of utilizing SAFEs and convertible debt
- SAFEs: key terms and tax implications
- Treatment for federal income tax purposes (Sections 1202 and 1045)
- Tax treatment for purposes of Section 368
- Tax treatment for purposes of Section 83
- Convertible notes: key terms and tax implications
- Best practices and pitfalls to avoid
Benefits
The panel will discuss these and other key issues:
- What are the typical terms of a SAFE?
- What are the tax implications for utilizing SAFEs?
- What are the tax implications of SAFEs under Sections 1202, 1045, 83, and 368?
- How does the tax treatment of a SAFE differ from a convertible debt instrument?
Faculty
Christopher A. Karachale
Partner
Hanson Bridgett
Mr. Karachale advises individuals and business entities on a broad range of tax planning and tax controversy matters.... | Read More
Mr. Karachale advises individuals and business entities on a broad range of tax planning and tax controversy matters. He has written extensively on QSBS issues. He counsels taxpayers on employee benefits and executive compensation issues, including deferred compensation and Section 409A. He assists clients with international tax compliance, including voluntary disclosures and related planning matters. He represents individuals and an array of business entities in controversy matters before the IRS and California state tax authorities.
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Seth Lebowitz
Partner
Sadis & Goldberg
Mr. Lebowitz advises clients on the tax-efficient planning and execution of a broad range of transactions, with a... | Read More
Mr. Lebowitz advises clients on the tax-efficient planning and execution of a broad range of transactions, with a particular focus on the formation, operation and investing activities of private equity and hedge funds.
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Joseph Wiener
Senior Manager, Washington National Tax
RSM US
Mr. Wiener specializes in mergers and acquisitions in RSM US LLP’s Washington National Tax practice. He... | Read More
Mr. Wiener specializes in mergers and acquisitions in RSM US LLP’s Washington National Tax practice. He develops firm policies and advises clients on transaction-related federal tax issues. Mr. Wiener helps strategic buyers and private equity firms consider the tax ramifications of mergers, acquisitions, restructurings and other corporate transactions. He also supports the firm nationally through thought leadership; he publishes articles, white papers and memoranda that address a variety of corporate and M&A tax issues.
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