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Section 83(b) Election

Definition: [crh] A tax filing within 30 days of grant that allows employees granted stock to pay taxes on the grant date instead of on the date restrictions lapse. If an employee files Definition: the election, taxes are based on the fair market value on the grant date, with any future appreciation taxed as a capital gain. If the employee does not file an electiDefinition: on, taxes are based on the fair market value on the date the restrictions lapse, which will be higher assuming the stock has appreciated in value.

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