The special § 83(b)election (i.e. ,where income is taxed in the year of the grant)with respect to a restricted stock plan may be advantageous in which of the following situations in 2016?
A)The employer is an unstable company.
B)The bargain element is relatively small.
C)A minimum amount of appreciation is expected in the future.
D)The restriction probably will not be satisfied.
E)None of the above.

Question

Quizplus · Accepted Answer

The § 83(b) election is advantageous when the bargain element is small because it allows the taxpayer to pay taxes on a lower amount, assuming the stock will appreciate in the future.

The Special § 83(b)election (I