tle PLLC CERTIFIED PUBLIC ACCOUNTANTS RESTRICTED STOCK AWARDS Employees often receive stock-based compensation from their employer as part of their compensation package. The taxation of this compensation can be subject to ordinary-income, capital gains, employment and other taxes. However, if you receive restricted stock awards, you might have a tax-saving opportunity in the form of the Section 83(b) election which allows you to recognize ordinary income when you receive the stock. This will allow you to convert future appreciation from ordinary income to long-term capital gains income and defer it until the stock is sold This can be beneficial if the income at the grant date is negligible or if the stock is likely to appreciate significantly. It's a complicated decision, and there are some disadvantages, so if you have questions we can help you decide if this makes sense for your situation. Morgantown, WV 304.554.3371 Charleston, WW 304.343.4126 1 Parkersburg, WW 304.485.6584 www.suttlecpas.com