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FinnZ [79.3K]
3 years ago
10

Stevie recently received 1,035 shares of restricted stock from her employer, Nicks Corporation, when the share price was $9 per

share. Stevie's restricted shares vested three years later when the market price was $12. Stevie held the shares for a little more than a year and sold them when the market price was $15. Assuming Stevie made a section 83(b) election, what is the amount of Stevie's ordinary income with respect to the restricted stock?
Business
1 answer:
Anton [14]3 years ago
4 0

Answer:

9,315

Explanation:

The 83(b) election of the IRC which allows the employe of restricted stock to pay taxes on the fair market value at the time were granted.

It applies when the stocks are subject to vesting

The 83(b) election becomes useful when the employee has confidence that market value will increase and thus, saving taxes in the future.

If the market price decrease over the years or the company files for bankrupcy, the taxpersons will have pay income taxes for a worthless amount.

Also, if he leaves the company before esting the shares, it would had pay taxes for shares it won't receive.

So, resuming: under election 83(b) we use granted time value

1,035 x 9 = 9,315

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Which two investment options would be best if you are 20 year old, just starting to save, and want to retire when you are 70? Co
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Answer:

b. The pairs in which neither individual is given extra juvenile hormone is the control

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