83(b) election

[DTS]

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

[OldJack]

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

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.

[Nancy]

Link to more information

Here is a link to more information:

http://edzollars.com/2006-11-11_83b_and_AMT.pdf

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

[DTS]

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