There are 2 types of stock awards that are typical: Stock Options and Restricted Stock.
Restricted Stock is something that 83(b) can help with the tax implications. Stock Options are handled differently and are always taxed at the income tax rate.
If Zuckerberg received Options, then there's nothing he can do with an 83(b) election to get lower taxes.
This stuff is tricky, even for the professionals in this space, and I am certainly not the person to get this advice!
83(b) also applies to stock options. See Treas. Reg. 1.83-7.
Given Zuckerberg's prodigious use of lawyers in the past (especially in regards to monkeying around with FB's stock), it is likely that the type of stock options at issue here did not qualify.
Comments
There are 2 types of stock awards that are typical: Stock Options and Restricted Stock.
Restricted Stock is something that 83(b) can help with the tax implications. Stock Options are handled differently and are always taxed at the income tax rate.
If Zuckerberg received Options, then there's nothing he can do with an 83(b) election to get lower taxes.
This stuff is tricky, even for the professionals in this space, and I am certainly not the person to get this advice!
83(b) also applies to stock options. See Treas. Reg. 1.83-7.
Given Zuckerberg's prodigious use of lawyers in the past (especially in regards to monkeying around with FB's stock), it is likely that the type of stock options at issue here did not qualify.