WEALTH MANAGEMENT BLOG

Join the Conversation

An 83B election, which could help you pay less tax on your stock options/restricted stock, must be filed within 30 days of receiving a stock grant. Otherwise, the election is null and void.

If, after carefully weighing the tradeoffs, you decide to make this election, take these steps*:

1) Within 30 days after you receive the stock, send the election via certified mail to the IRS office where you file your income tax return.

2) Provide a copy of the election to the company that granted you the stock (typically, your employer).

3) Make sure you maintain a copy of the election and evidence you filed within the time limit.

4) Before doing all this, consult with your CPA/tax advisor/financial advisor.

Keep in mind: When you file the election, the grant date value is taxed as compensation income.

*As outlined in “Consider Your Options: Get the Most from Your Equity Compensation” by Kaye A. Thomas

Disclaimer: For information purposes only and should not be interpreted as legal, tax or financial advice. Always consult your CPA/tax advisor/attorney (or reach out to us;) to discuss your specific situation

Pin It on Pinterest

Share This