4 ms·
Early exercise / 83(b) has another benefit that most people aren't aware of -- if the exit is at least 5 years out, you can exclude 100% of your gain from feder
by lafay 9y ago
Early exercise / 83(b) has another benefit that most people aren't aware of -- if the exit is at least 5 years out, you can exclude 100% of your gain from federal cap gains tax under IRS Section 1202.
See here for more: https://blog.wealthfront.com/qualified-small-business-stock-2016/ https://blog.wealthfront.com/qualified-small-business-stock-...
- pmiller2 9y agoAren't 83(b) elections only really available to founders, though?
- yojo 9y agoNo, it's at the discretion of the company. I asked for an 83(b) option at a 10 person startup I worked at and the CEO made it happen. The startup still went under so it didn't matter in the end, but management definitely did what they could for the employees.
- morgante 9y agoEarly employees (<25) can often negotiate them as well. I've done 83(b) at every startup I joined.