A section 83(b) election freezes the value of restricted stock for compensation purposes on the vesting date.The 83(b) election values the restricted stock on the grant date instead of the vesting date.

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A section 83(b) election allows the taxpayer to elect to include the value of restricted stock in their income at the time of grant, rather than at the time of vesting, thus freezing the value for compensation purposes at the grant date.

A Section 83(b) Election Freezes the Value of Restricted Stock