Tax
Section 83(b) Election
Quick definition
Tax election for restricted stock holders to be taxed on grant-date value instead of vesting value.
A Section 83(b) election lets you pay ordinary income tax on the value of restricted stock at grant instead of at vesting — nearly always beneficial if current value is low and expected to rise. Must be filed with the IRS within 30 days of grant.
Related tax terms
R&D Tax Credit
Federal credit for qualified research expenses, usable against payroll tax by startups.
Delaware Franchise Tax
Annual tax for Delaware corporations, often quoted wildly too high if calculated incorrectly.
Nexus (Sales Tax)
The connection with a state that triggers a tax-collection obligation.
QSBS (Qualified Small Business Stock)
Tax exemption for gains on qualifying startup stock held 5+ years.
See this in action
Insights and tools where Section 83(b) Election shows up.
Got a finance question that needs more than a definition?
Talk to a real CFO. 30 minutes, no contract, free.
