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 2014?
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 these.

Question

Quizplus · Accepted Answer

A small amount of current appreciation will result in the recognition of a small amount of ordinary income in the current year and a large amount of expected future appreciation will be taxed in the future as a capital gain.This result may be advantageous because of the beneficial treatment of capital gains.

The Special § 83(b)election (I