Which of the following statements regarding restricted stock is false?
A) Even if the value of restricted stock decreases from the price on the grant date, it retains some value to the employee.
B) Like stock options, restricted stock has to vest before it can be sold.
C) Like nonqualified stock options, the employee's income inclusion for restricted stock is the bargain element.
D) There is no effective tax planning elections for restricted stock.

Question

Quizplus · Accepted Answer

Restricted stock is taxed differently than nonqualified stock options. The income inclusion for restricted stock is not the bargain element; instead, it is the fair market value of the stock at the time it vests.

Which of the Following Statements Regarding Restricted Stock Is False