Tax Center - Section 83(b)

Tax Center › Section 83(b)

podcast icon Want to know more? Listen to our podcast on tax return tips and how to avoid reporting mistakes!

podcast icon Check out our podcast and video on the tax forms and reporting rules for stock sales.


Decisions At Grant With Restricted Stock (Part 2): The 83(b) Election Risks This is premium content

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.

Early-Exercise ISOs Complicated By Final IRS Regulations This is premium content

Featuring reverse vesting, early-exercise stock options are usually granted only by pre-IPO companies. The IRS regulations on ISOs increase risk in early-exercise options, making it crucial that you understand the tax treatment.


Why, when, and how would I make a Section 83(b) election?

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...

Can my company help me file my Section 83(b) election?

A survey in 2013 by the National Association of Stock Plan Professionals found that...

Can I make a Section 83(b) election for just part of my restricted stock grant? This is premium content

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...
Show More FAQs (7 more)

With restricted stock units (RSUs), can I make a Section 83(b) election to be taxed at grant instead of share delivery? This is premium content

Restricted stock follows the tax rules under Section 83 of the Internal Revenue Code, while RSUs are taxed under Section 451 upon the actual or constructive receipt of the shares...

Do I need to attach my Section 83(b) election to my tax return? This is premium content

Until recently, after making a Section 83(b) election, you had to attach a copy of the election to your tax return. In 2015, the IRS and the Treasury proposed an amendment to...

Can I exercise my options before they are vested and make a timely Section 83(b) election to be taxed on the spread at that point? This is premium content

Generally, stock options are exercisable only when they vest. However, some pre-IPO companies grant options that...

Is a Section 83(b) election taxing you on the value of restricted stock at grant ever revocable? Can it be rescinded? This is premium content

The IRS has provided guidance on the limited circumstances in which this is permitted. The Section 83(b) election is irrevocable unless you...
We've updated our Privacy Policy, and this site uses cookies. Read the Privacy Policy to learn more.