Income Event Created from Stock Received

[freevader]

What is the name of your state? Maryland

Hello, I will try to be brief. I am in a start-up and received company stock that I have not sold. To increase my equity position within the company we agreed to a promissory note that over time would be forgiven on a quarterly basis. The promissory note was given to me to receive X amount of shares immediately. At the time I understood those shares received to be a taxable income event. Lets say it was 100 shares of XYZ @ $30 each.

My questions are the following: 1. Am I correct in saying this is an income event? 2. Does the company need to provide me with some formal 1099 document or W-2 regarding this? 3. Where and how do I record this event?

Thank you very much in advance for your help!

[LdiJ]

Originally Posted by freevader

What is the name of your state? Maryland

Hello, I will try to be brief. I am in a start-up and received company stock that I have not sold. To increase my equity position within the company we agreed to a promissory note that over time would be forgiven on a quarterly basis. The promissory note was given to me to receive X amount of shares immediately. At the time I understood those shares received to be a taxable income event. Lets say it was 100 shares of XYZ @ $30 each.

My questions are the following: 1. Am I correct in saying this is an income event? 2. Does the company need to provide me with some formal 1099 document or W-2 regarding this? 3. Where and how do I record this event?

Thank you very much in advance for your help!

I am not sure that I entirely understand what is going on here. Can you try rewording your post? It may be that in trying to be brief, you aren't explaining things clearly.

[freevader]

Thanks for the quick reply. I've read a little more and it looks like I should have received a W-2.

Basically, I received stock from my company as a form of compensation, instead of cash. My understanding now is that even non-cash payments to an employee need to be recorded on a W-2.