📑 Founders, take advantage of our free 83(b) election template! 📑 The 83(b) election allows you to lock in a low tax basis on your stock early, potentially saving you significant taxes in the future. It's a critical step for startup founders, and we've made it easier with a free downloadable template. Download the template now and ensure you're making the most of this important tax strategy. Watch the video for more details and find the link to the article in Vanessa Kruze, CPA's original post. #StartupFinance
🚀 Founders, Beware of Missing Out on the 83(b) Election! 🚀 I've seen the pain and anguish founders face when they overlook the critical 83(b) election, only to be hit with hefty tax bills later. So, what is this 83(b) election, and why should you care? The 83(b) election is a formal letter you send to the IRS, allowing you to buy your stock immediately, even if it hasn’t all vested yet, locking in a low tax basis. This means any appreciation after filing is taxed at the capital gains rate, which is about 20%. If your startup IPOs, you only pay capital gains tax on the huge gain! 📝 Key Points to Remember: 🔸 The 83(b) election must be filed within 30 days of receiving your stock grant. 🔸 It allows you to recognize income at the time of grant, potentially saving you from higher taxes later. 🔸 Failing to file means you'll pay income tax on the stock's appreciation as it vests, which can be significantly higher. Filing isn't complicated, but it's time-sensitive and critical. Don’t risk paying more in taxes later—consult with your tax professional and get that election filed on time! Watch this video for more details 👇