The Potential Tax Benefits (or Drawbacks) of Form 83(b) | By Reagan A. Hamilton, ChFC®
Form 83(b) is an optional form filed with the IRS that allows you to claim the taxable income of restricted stock on the grant date, rather than the vesting date. In some circumstances, this can be a significant tax savings, allowing you to achieve capital gains tax rates on all the appreciation, instead of only the appreciation amount after the vesting schedule requirement has been met.