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83(b) Election

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Taxes83(b) Election


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What is the 83(b) election?

The 83(b) informs the IRS that you will pay taxes, for the tax year you received the grant, on an entire stock grant (RSUs, or early-exercised stock options) up front, at its current valuation. This also starts the clock on long-term capital gain, even though your stock isn't fully vested yet. 🎉

When do I file the 83(b) election?

You must mail the election to the IRS within 30 days of receiving a stock grant or purchasing your stock options.

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