Top 5 Reasons to File a Section 83(b) Election [Ask Your CPA!]

Attorney and CPA Chad D. Cummings explains the strategic benefits of timely filing an Section 83(b) election in this presentation. By filing within 30 days of receiving property subject to a substantial risk of forfeiture, you lock in ordinary income recognition at the grant-date fair market value rather than at each vesting date, convert future appreciation into capital gain, start the capital gains holding period immediately, eliminate uncertainty around future tax rates and vesting events, and simplify the treatment of LLC or partnership interests. These advantages can deliver substantial tax savings when the property’s value at grant is low relative to its expected future value, but the election is irrevocable, carries risk if the property is forfeited, and must be filed correctly with no extensions. This presentation covers when the election makes sense, the mechanics, common pitfalls, and why professional guidance is essential. Learn more: https://www.cummings.law/onboard/83b/index.html