2 ms·

But you can frontload all the "income" and taxes upfront. That's what an 83(b) election is: "Hi IRS, I'd like to pay/recognize this taxable event all right now,

by boulos 10y ago

But you can frontload all the "income" and taxes upfront. That's what an 83(b) election is: "Hi IRS, I'd like to pay/recognize this taxable event all right now, even before it vests". So you get 1000 shares x $1/share = $1000 of income, and you pay taxes on it.

idunno246 10y ago
If they are options, and your company allows you to exercise early, then you can buy them and pay $1000 to convert to restricted stock, file an 83(b), and it's $0 in taxes as theres no gain. If they are just restricted stock(not to be confused with RSU) then you can 83(b) like you said. But any way you do it, including holding options, has a bunch of risk so every situation is unique.