A controversial strategy used by investors with large stock positions to generate liquidity without incurring current taxes by contracting with a brokerage firm to deliver the shares of stock at some future date In return for a cash payment equal to 90% of its current value. The deferred tax treatment, currently being challenged by the IRS, is based on the assertion that an actual transfer of shares has not yet occurred.
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- Variable prepaid forward contract - Wikipedia, the free encyclopedia
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- Variable Prepaid Forward Contracts Definition | Investopedia
Variable Prepaid Forward Contract: Scam Or Safety Net? Top executives can benefit from this kind of contract, but is it at the expense of the shareholders?
- Variable Prepaid Forward Contract: Scam Or Safety Net?
Aug 24, 2009 ... Top executives can benefit from this kind of contract, but is it at the expense of the shareholders?
- Variable Prepaid Forward Contracts Incorporating Share Lending ...
Aug 3, 2012 ... UIL: 1001.00-00. INTRODUCTION. On August 24, 2006, the Service identified certain Variable Prepaid Forward Contract (“VPFC”) transactions ...
- Tax Court: Variable Prepaid Forward Contract + Stock Loan = Sale ...
Jul 30, 2010 ... In a much-anticipated decision, the Tax Court has held that a taxpayer who entered into a variable prepaid forward contract and a related stock ...
- WSJ: IRS Targets Billionaire's Variable Prepaid Forward Contract
Jun 9, 2008 ... The IRS is fighting with billionaire Philip Anschutz to force the Denver-based mogul to pay back taxes totaling $143.6 million. The court battle is ...
- Variable prepaid forward contract: Definition from Answers.com
Variable Prepaid Forward Contracts An agreement to give a predetermined number of shares to a brokerage firm, with the stipulation of officially transferring.
- How does a variable prepaid forward contract work? - Quora
Nov 30, 2011 ... People seem to think it is a tax loophole, but isn't it just a cap collar strategy and taxes are due upon delivery?. Answer 1 of 2: Primary attributes ...