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Date:   Mon, 7 Feb 2000
From:   Tom

Michael,

First, thanks for the very informative page filled with information valuable to us here in the Valley.

I have a question regarding ISO's and 83(b) election. I am vested in several thousand shares of my company's stock and I'm currently exploring whether/when to exercise. A consultant here at the company said that 83(b) election was likely not available to us. I was wondering if you could give general guidelines concerning 83(b) election.

Answer

Date:   9 Feb 2000

Hello Tom,

Since your shares are vested, the Section 83(b) election probably isn't required. You only need it when your company allows an early exercise of your options (before vesting) or when SEC Rule 16(b) applies (you're a corporate insider.)

I hope this helps.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.