US · complianceSources checked
When must an 83(b) election be filed?
Under 26 U.S.C. 83(b), someone who receives property in connection with performing services may elect to include its value in gross income for the year of transfer, rather than later when the risk of forfeiture lifts. Section 83(b)(2) requires the election to be made not later than 30 days after the date of the transfer, and it cannot be revoked except with the Secretary's consent.
Sources
- 26 U.S.C. 83 (Property transferred in connection with performance of services)govinfo.gov (U.S. Government Publishing Office) · checked 17 August 2026 · United States Code, 2023 edition, as published by GPO.
Related questions
- What counts as a substantial risk of forfeiture?
- Section 83(c)(1) states rights are subject to a substantial risk of forfeiture where a person's rights to full enjoyment of the property are conditioned on the future performance of substantial services.
- What if the shares are forfeited after the election?
- Section 83(b)(1) states that where the election has been made and the property is later forfeited, no deduction is allowed in respect of that forfeiture.
What this answer does not cover
- This page states the statutory deadline and effect. It does not assess whether making the election is the right choice in any particular situation.
- The manner of making the election is prescribed by the Secretary rather than set out in the statute, so check the current filing requirements.
