The taxpayer elects under Section 83(b) of the Internal Revenue Code to include the fair market value of shares received from their employer as income for the current tax year. The taxpayer received 1,000,000 shares of common stock in Startup, Inc. subject to a repurchase option by the company if employment ends. The fair market value per share is $0.50 and amount paid was also $0.50 per share.
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The taxpayer elects under Section 83(b) of the Internal Revenue Code to include the fair market value of shares received from their employer as income for the current tax year. The taxpayer received 1,000,000 shares of common stock in Startup, Inc. subject to a repurchase option by the company if employment ends. The fair market value per share is $0.50 and amount paid was also $0.50 per share.
The taxpayer elects under Section 83(b) of the Internal Revenue Code to include the fair market value of shares received from their employer as income for the current tax year. The taxpayer received 1,000,000 shares of common stock in Startup, Inc. subject to a repurchase option by the company if employment ends. The fair market value per share is $0.50 and amount paid was also $0.50 per share.
Copyright:
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Download as DOC, PDF, TXT or read online from Scribd
The taxpayer elects under Section 83(b) of the Internal Revenue Code to include the fair market value of shares received from their employer as income for the current tax year. The taxpayer received 1,000,000 shares of common stock in Startup, Inc. subject to a repurchase option by the company if employment ends. The fair market value per share is $0.50 and amount paid was also $0.50 per share.
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ELECTION UNDER SECTION 83(b) OF THE INTERNAL REVENUE CODE OF 1986 The undersigned taxpayer hereby elects, pursuant
to Section 83(b) of the Internal Revenue Code of !8", as a#ended, to include in taxpayer$s gross inco#e or alternative #ini#u# taxable inco#e, as applicable, for the current taxable year, the a#ount of any inco#e that #ay be taxable to taxpayer in connection %ith taxpayer$s receipt of the property described belo%& ' The na#e, address, taxpayer identification nu#ber and taxable year of the undersigned are as follo%s& ()*+ ,- T)./)0+R& ()*+ ,- S/,1S+& )33R+SS& I3+(TI-IC)TI,( (,' ,- T)./)0+R& I3+(TI-IC)TI,( (,' ,- S/,1S+& T).):;+ 0+)R& 9' (guyen (guyen (2) 45 Sunny 6ay, /alo )lto, C) !7357 "358958 937 (2) 95 7
The property %ith respect to %hich the election is #ade is described as follo%s& ,555,555 shares of Co##on Stoc< of Startup, Inc', a 3ela%are corporation (the = Company=)'
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The date on %hich the property %as transferred is >anuary 4, 95 7' The property is sub?ect to the follo%ing restriction& Repurchase option at original cost in favor of the Co#pany upon ter#ination of taxpayer$s e#ploy#ent or consulting relationship' The nu#ber of shares sub?ect to repurchase declines over a period of @.A years'
4' "'
The fair #ar<et value at the ti#e of transfer, deter#ined %ithout regard to any restriction other than a restriction %hich by its ter#s %ill never lapse, of such property is B5'555 per share' The a#ount (if any) paid for such property is B5'555 per share'
The undersigned has sub#itted a copy of this state#ent to the person for %ho# the services %ere perfor#ed in connection %ith the undersigned$s receipt of the above -described property' The transferee of such property is the person perfor#ing the services in connection %ith the transfer of such property' The unders !ned unders"#nds "h#" "he $%re!% n! e&e'" %n (#) n%" be re*%+ed e,'e-" . "h "he '%nsen" %$ "he C%(( ss %ner/ 3ated& Taxpayer 3ated& Spouse of Taxpayer
