Ensure a timely 83(b) election with NexusWorks
Expertly tailored financial services for startups, foreign founders, and growing businesses. Stay compliant, efficient, and financially secure.
Make Your 83(b) Election on Time Save Big Later
Filing an 83(b) election is like claiming your spot in musical chairs wait too long, and you could face costly consequences.
As a startup founder, receiving stock options or equity is exciting, but as your shares vest, your tax liability can grow significantly.
An 83(b) election allows you to pay taxes upfront based on the stock’s current market value, potentially saving you a substantial amount in the long run.
Nexusworks ensures your 83(b) election is filed correctly and on time helping you avoid common mistakes and maximize your financial benefits.
No Need To Be the Middleman
Say goodbye to the endless hours spent shuttling information between your accountant and bookkeeper.
Let us handle your 83(b) election
83b Election
Preparation of your 83b election letter
Guidance on submitting the election to the IRS (you will need to sign and mail the letter to the IRS)
Frequently Asked Question
These FAQs provide a balanced overview of company
services and approaches.
What is a Section 83(b) election?
A Section 83(b) election is a provision under the Internal Revenue Code that allows recipients of restricted stock or other property subject to vesting to elect to be taxed on the value of the property at the time of grant, rather than at the time of vesting. This election can result in significant tax savings if the property’s value appreciates over time.
Who should consider filing an 83(b) election?
Individuals who receive restricted stock or other property subject to vesting, such as startup founders, employees, or service providers, should consider filing an 83(b) election, especially if they anticipate the value of the property will increase over time.
What are the benefits of making an 83(b) election?
The primary benefit of an 83(b) election is the potential to pay taxes at the current, possibly lower, fair market value of the property at the time of grant. This can result in lower taxable income and potential tax savings if the property’s value increases over time.
Should foreign founders or employees file an 83(b) election?
Foreign founders or employees should consider filing an 83(b) election if they plan to move to the U.S. during the vesting period or if their country of residence treats the vesting of shares as income. Consulting with a tax advisor familiar with international tax laws is recommended.
Does making an 83(b) election affect state taxes?
The impact of an 83(b) election on state taxes varies by jurisdiction, as state tax laws differ significantly. It’s essential to consult with a tax advisor familiar with your state’s regulations to understand the specific implications.
Can an 83(b) election be revoked or amended once it is filed?
No, once an 83(b) election is filed, it is irrevocable and cannot be amended. Therefore, it’s crucial to carefully consider the decision before making the election.
Why Choose our Tax Services?
Expert Guidance
Our team of certified tax professionals stays current with the latest tax laws and regulations.
Personalized Service
We take the time to understand your unique financial situation and goals.
Year-Round Support
Tax planning isn't just a seasonal activity-we're here for you throughout the year.
