TAXATION OF RESTRICTED STOCK PLAN
01.Core Concepts
• At receipt of the restricted stock: • No taxable income/deduction • Unless executive elects IRC Section 83(b) • At the time the restriction is lifted: • Executive’s right to stock vests • W-2 income for the fair market value of the stock • Employer has tax deduction equal to the W-2 amount • Executive’s holding period begins at the date the restriction is lifted