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

question 11

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 these is false.

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Definitions:

Contrast Medium

A substance used in medical imaging examinations to improve the visibility of internal body structures in the resulting images.

Common Bile Duct

Duct that carries bile to the duodenum. It is formed from the merger of the cystic and hepatic ducts.

Cholangiography

A test that evaluates the function of the bile ducts by injection of a contrast medium directly into the common bile duct (during gallbladder surgery) or through a T-tube (after gallbladder surgery or during radiologic testing) and taking an X-ray.

Bile Ducts

Channels that carry bile from the liver and gallbladder to the duodenum for digestion.