The Case of the Dubious Debt

05/06/2024 14 min Temporada 3 Episodio 4
The Case of the Dubious Debt

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Episode Synopsis

What do you do when you want to exercise your startup's stock options but need to borrow money to do so? Do you take an interest-free loan from your company? Heidi counsels her former student Aisha on why that may sound like a great offer, but the devil is in the details. It's likely that a loan could lead to painful financial consequences later. More Information: https://www.threshold.vc/podcast/the-case-of-the-dubious-debt Further Reading: Here it is, straight from the IRS, what capital gains are and the rate at which they are taxed:  https://www.irs.gov/taxtopics/tc409 And also, straight from the IRS, how they look at forgiven loans as ordinary income: https://www.irs.gov/taxtopics/tc431 And here's a comprehensive