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IRC Section 83(b) Election for Restricted Property: Making the Election, Advantages and Risks

A live 110-minute CPE webinar with interactive Q&A

This program is included with the Strafford CPE Pass. Click for more information.
This program is included with the Strafford CPE+ Pass. Click for more information.
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Tuesday, July 2, 2024

1:00pm-2:50pm EDT, 10:00am-11:50am PDT

Early Registration Discount Deadline, Friday, June 7, 2024

or call 1-800-926-7926

This webinar will outline the advantages and risks of making an IRC Section 83(b) election. Our panel of federal income taxation professionals will point out scenarios when the election is advantageous, the caveats of making the election that a service provider must consider and review the steps for submitting the election.


Paying service providers with equity can benefit companies and service providers. Service providers receive an asset that, hopefully, appreciates, while employers can offer a powerful incentive for service providers to remain with the company. Usually, compensation is taxed when received at ordinary income rates. Since restricted property is forfeitable and not transferrable, it is generally not taxed until the restrictions are satisfied or the property becomes transferrable.

An election under IRC Section 83(b) allows a service provider to pay tax on the restricted property received based on its value on the date it is granted rather than the date it is vested. This allows the recipient to pay tax upon a sale of the property at capital gains rates (subject to satisfying certain holding period requirements) rather than ordinary rates on the appreciation that takes place between the grant date and vesting date.

There are caveats to consider for the company and service provider. The restricted property value could depreciate. The election must be timely and properly made. Yet the tax savings can be substantial. Tax advisers, employers, and service providers of businesses considering or making equity grants need to understand the details of Section 83(b) elections to reap the tax savings.

Listen as our panel of tax and compensation and benefits experts reviews the nuances of Section 83(b) elections.



  1. IRC Section 83(b): Introduction
  2. Eligibility
  3. Taxation of restricted property
  4. Company considerations
  5. Service provider considerations
  6. S corporation considerations
  7. Profits interests; protective Section 83(b) elections
  8. Missed elections
  9. Examples


The panel will cover these and other critical issues:

  • When is it beneficial to file a Section 83(b) election?
  • When is it not advantageous to file a Section 83(b) election?
  • How is the tax calculated when restricted property is granted, and a Section 83(b) election is in place?  What are the tax consequences upon vesting?
  • How is the tax calculated upon vesting of restricted property where a Section 83(b) election is not in place?
  • How is a missed Section 83(b) election rectified?


Gilbert, David A.
David A. Gilbert

Pierson Ferdinand

Mr. Gilbert represents domestic and international clients in a wide range of federal, state, and local tax matters. He...  |  Read More

Wilkinson, TJ
TJ Wilkinson

Shulman Rogers

Mr. Wilkinson provides clients with insight into the income tax implications of their business transactions and helps...  |  Read More

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Early Discount (through 06/07/24)

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Early Discount (through 06/07/24)

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