Which of the following is False regarding a section 83(b) election?
A) The election freezes the value of the employee's compensation as of the grant date.
B) The election is an important tax planning tool if the stock is expected to increase in value.
C) The election must be made within 30 days of the grant date.
D) If an employee leaves before the vesting date, any loss is limited to $3,000.

Question

Quizplus · Accepted Answer

Employees are not allowed to deduct a loss if restricted stock subject to a section 83(b) election is forfeited.

Which of the Following Is False Regarding a Section 83(b)