A Section 83(b) Election Freezes the Value of Restricted Stock

question 41

True/False

A section 83(b) election freezes the value of restricted stock for compensation purposes on the vesting date.The 83(b) election values the restricted stock on the grant date instead of the vesting date.

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Definitions:

Mechanic's Lien

A legal claim against a property by a contractor or worker, for unpaid labor or materials provided for the property's improvement.

Real Property

Land and anything permanently attached to it, such as buildings and structures, including rights associated with the land.

Improvements

Enhancements made to a piece of property or to an asset that increase its value or utility.

Substantial Performance

Contract performance that occurs when nearly all the terms of the agreement have been met, there has been an honest effort to complete all the terms, and there has been no willful departure from the terms of the agreement.