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Founder Tax Planning Series Part 2: QSBS and 83(b) Elections With Mark Cecchini, CFP

The Long Game

CHAPTER

How to File an 83 B Election

Kha: Time frame is like 30 days of the grant date on those options. If you wait and now it's 25 dollars a share new exercise you know 10,000 shares you have a 24 dollar spread so hey that's what 240,000 difference here. You're going to probably have a lot of amt which is taxed at 26 or 28 percent  which is something a lot of people don't want. The other option is um if you have restricted stock which sometimes the founders or you know the very early on people are given restricted stock they can still file 83 b election right there front load taxes.

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