IRC SECTION 83(b)
01.Core Concepts
• Employee election to include value of stock in taxable income at date of grant rather than at date of vesting or when restrictions are lifted. • Any gain in value over the grant date is capital gain rather than W-2 income. • If employee does not vest, or otherwise loses rights, no tax-deductible loss. • Employee’s holding period for stock received will be the date the amount was included in the employee’s gross income.