If the Special Election Under § 83(b) Is Made as a Result

question 81

Multiple Choice

If the special election under § 83(b) is made as a result of a restricted property transaction, which statement is false?

• A)A factor supporting making the § 83(b) election is the expectation the property will appreciate substantially.
• B)Ordinary income is recognized on the excess of the FMV over the amount paid for the property on the date received.
• C)Any appreciation on the property after receipt is treated as capital gain.
• D)A deduction is allowed to the employee for any taxes paid on the original amount included in gross income if the property is subsequently forfeited.
• E)None of the above is false.

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Definitions:

First Nations

Indigenous peoples in Canada who are not Inuit or Métis, historically consisting of various distinct tribes and ethnic groups.

Assimilation Policy

A policy encouraging or forcing a group to adopt the culture or norms of a dominant or majority group.

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Disease that affect the respiratory system, which are the organs involved in breathing (the nose, throat, larynx, trachea, bronchi, and lungs).