Section 83(b) election is considered an attractive tax planning instrument for companies in the early stages of enterprise development. Founders or company employees that make the 83(b) election pay their income-tax at the time of grant (not vesting) on the difference between the amount they paid and fair market value (FMV) of the stock at that point of time. They subsequently pay a capital gains tax at the time of sale to the extent of value appreciation.
However, to avail this advantage, it is extremely important for the tax payers to make a timely 83(b) election with the IRS to adverse tax consequences.
CredValassist companies seeking to comply with Section 83(b) election. Having conducted various valuation assignments to determine fair market value, CredVal’s highly experienced valuation professionals provide in-depth analyses and valuation expertise required for Section 83(b) compliance.