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I'm confused here because my understanding is that 83b is specifically for shares and not options.
by sb8244 5y ago
I'm confused here because my understanding is that 83b is specifically for shares and not options.
- junar 5y agoThe 83(b) is not for the option per se, but the shares you own after you exercise the option. > ... if the stock purchased pursuant to the exercise of an option is subject to a substantial risk of forfeiture, the service provider may make an IRC §83(b) election with respect to the stock received pursuant to the exercise of the option. https://www.irs.gov/businesses/corporations/equity-stock-based-compensation-audit-techniques-guide https://www.irs.gov/businesses/corporations/equity-stock-bas... Also see "Restricted Property" in Pub 525. https://www.irs.gov/publications/p525#en_US_2020_publink1000229234 https://www.irs.gov/publications/p525#en_US_2020_publink1000...
- sb8244 5y agoWow. Thanks a ton for those links. Definitely something I want to share with others in the future.