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83(b) election

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    83(b) election

    30-day timeframe for my client to make this election on restricted stock has passed already, but in future years when additional shares are issued to him, can he make this election on the new issues?

    I've searched and searched, but can nothing on this. What I did find led me to believe this is the way this would work.

    Thanks for some clarification on this.
    Dennis

    #2
    Well... I have never had this situation, but it would appear to me that the election is made for each transfer.

    Originally posted by USC Sec. 83
    Sec. 83. Property transferred in connection with performance of
    services

    (b) Election to include in gross income in year of transfer
    (1) In general
    Any person who performs services in connection with which
    property is transferred to any person may elect to include in his
    gross income for the taxable year in which such property is
    transferred, the excess of -
    (A) the fair market value of such property at the time of
    transfer (determined without regard to any restriction other
    than a restriction which by its terms will never lapse), over
    (B) the amount (if any) paid for such property.

    If such election is made, subsection (a) shall not apply with
    respect to the transfer of such property, and if such property is
    subsequently forfeited, no deduction shall be allowed in respect
    of such forfeiture.
    (2) Election
    An election under paragraph (1) with respect to any transfer of
    property shall be made in such manner as the Secretary prescribes
    and shall be made not later than 30 days after the date of such
    transfer.
    Such election may not be revoked except with the
    consent of the Secretary.

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      #3
      Link to more information

      Here is a link to more information:



      The article does a good job of discussing the pros and cons of the election.

      Comment


        #4
        Nancy and OldJack...

        thank you for the information. I did print up a several pages from various sites about the election and the ones you provided will be a big help, also!

        Thanks, again.
        Dennis

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