Tax Center: Section 83(b)
Test your knowledge with our
Taxes quiz.
Listen to our updated
podcast on tax return tips and how to avoid reporting mistakes!
NEW! A
podcast on this year's new tax forms and reporting rules for stock sales!
Articles
(Jump to FAQs)
Tom Davison
UPDATED! Part 1 examined the basic facts of restricted stock and the decisions you need to make at grant. Part 2 explains the risks of the 83(b) election, which lets you choose to be taxed at grant rather than vesting.
Michael Frank
The IRS has issued final regulations on ISOs. Understand how these final regulations increase the risks of early exercise.
Return to top of this page FAQs
(Jump to articles)
Named for the Internal Revenue Code section that authorizes it, this election is made only (1) when you want to be taxed on the value of restricted stock at grant rather than vesting or (2) when you exercise options that are...
A survey in 2010 by the National Association of Stock Plan Professionals found that...
Yes, according to most experts. There is nothing in Section 83 of the Internal Revenue Code that states or implies that a grant of restricted stock is a single piece of property...
Restricted stock and RSUs are governed by separate sections of the US tax code. Most experts say that you...
While there is no universally agreed-upon way, some accountants interpret IRS rules as requiring...
Generally, stock options are exercisable only when they vest. However, some pre-IPO companies grant options that...
When you forfeit the stock, you are allowed a limited capital loss deduction for any amount you paid...
No. You were optimistic that the stock price would rise. This is the risk...
The IRS has provided guidance on the limited circumstances in which this is permitted. The Section 83(b) election is irrevocable unless you...
The Section 83(b) election is irrevocable unless you show a...
Return to top of FAQs
Decisions At Grant With Restricted Stock (Part 2): The 83(b) Election Risks 
