Which of the following is false regarding a section 83(b) election?
A)The election freezes the value of the employee's compensation at the grant date.
B)The election is an important tax planning tool if the stock is expected to increase in value.
C)The election must be made within 30 days of the grant date.
D)If an employee leaves before the vesting date any loss is limited to $3,000.Employees are not allowed to deduct a loss if restricted stock subject to a section 83(b) election is forfeited.

Question

Quizplus · Accepted Answer

The statement "If an employee leaves before the vesting date any loss is limited to $3,000" is false. There is no limit on the loss that can be deducted if the stock is forfeited.

Which of the Following Is False Regarding a Section 83(b)