83(b) Election Timing

Section 83(b) of the Internal Revenue Code is a filing that lets someone recognize income on restricted stock immediately (at grant) instead of at vesting. When you get restricted stock that vests over 4 years, the default tax treatment is: you owe income tax on each vesting tranche as it vests, at the stock's fair market value at that time. Filing a Backslash-83(b) election flips this: you owe income tax immediately, at the grant price (usually much lower or $0), and then all future appreciation is capital gains. The window to file is 30 days from the grant date. Miss it and you cannot amend, refile, or appeal, the election is lost forever.