Got restricted stock? File §83(b) within 30 days or pay the bigger tax later.
FILE WITHIN 30 DAYS OF GRANT. No exceptions. No extensions. Per §83(b)(2).
Election Math · 2024
Tax NOW with §83(b) election
$3,200
Tax at vest WITHOUT election
$160,000
Cap gains tax on sale (with 83(b))
$0
Cap gains tax on sale (no 83(b))
$0
TOTAL · With §83(b)
$3,200
TOTAL · No election
$160,000
If shares forfeit before vest, §83(b) tax paid is NOT refundable. Only elect when (a) current FMV is low, (b) you expect growth, and (c) you reasonably expect to vest.
§83(b) election must be filed with IRS within 30 days of grant (transfer) and copy attached to year's return. Educational tool, not legal advice. Call 689-331-5723 or email info@zerofusstaxes.com.