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
Lesley P. Adamo
Partner Vice Chair, Tax Group
Lowenstein Sandler
Ms. Adamo works closely with clients, as well as her corporate colleagues, to understand clients' business... | Read More
Ms. Adamo works closely with clients, as well as her corporate colleagues, to understand clients' business objectives and help ensure that transactions are structured tax-efficiently. She provides counsel on a variety of transactional tax matters, including corporate, partnership, and individual tax issues arising at the federal, state, and international levels, and she advises clients in connection with mergers and acquisitions, joint ventures, fund formation, and the various tax issues specific to startup businesses and their founders. Ms. Adamo also has extensive experience in various other tax matters, such as cross-border transactions, blockchain transactions, qualified opportunity funds, bankruptcy-related issues, and derivative transactions.
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Daniel Mayo, J.D., LL.M.
Partner
Withum Smith+Brown
Mr. Mayo has more than 20 years of professional tax experience as well as experience in federal, international and... | Read More
Mr. Mayo has more than 20 years of professional tax experience as well as experience in federal, international and financial products taxation. He is a member of Withum’s National Tax Services Group and oversees the U.S. Federal income tax research, planning and review functions. Mr. Mayo is experienced in mergers and acquisitions, capital markets and cross-border transactions.
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