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.