Glossary • Updated 2026
83(b) Election
Tax restricted founder stock at grant value by filing within 30 days of issuance.
In detail
There are no extensions: an election filed on day 31 is invalid.
At formation the spread is usually pennies, converting future gains to capital treatment.
Mail certified with return receipt; copy to the company and the return.
Where it matters
More definitions
Sources
- Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries