Tax Playbook · Investment tax wins
The 83(b) election
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An 83(b) election lets you pay tax on restricted stock at its value on the grant date, not its value as it vests. You must file with the IRS within 30 days of getting the stock, and this deadline is never extended. That trade works well when $100 of stock might grow to $100,000. But if the stock falls or you leave before it vests, the tax you paid is not refunded.
Good for: Startup founders and early employees.
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Recent articles & guides
- Carta: 83(b) elections
- BAS Financial: 83(b) election and the 30-day deadline
- Propulsion Capital: The Section 83(b) election
- Creative Planning: 83(b) elections and QSBS
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.