Which of the Following Is False Regarding a Section 83(b)

question 60

Multiple Choice

Which of the following is False regarding a section 83(b) election?

• A) The election freezes the value of the employee's compensation as of the grant date.
• B) The election is an important tax planning tool if the stock is expected to increase in value.
• C) The election must be made within 30 days of the grant date.
• D) If an employee leaves before the vesting date, any loss is limited to $3,000.

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Definitions:

Evaluating Options

The process of examining and comparing different choices to make the best decision.

Decision-Critical Criteria

Essential and decisive factors considered critical in the evaluation and making of a decision.

Promising Option

A choice or opportunity that seems likely to lead to positive results or success.

Promising Option

A potential solution or choice that shows substantial merit or advantage.