ClearYear/Calculators

Stock comp

83(b) Break-Even Calculator

Compare tax now vs ordinary income later on a simplified restricted stock scenario.

Use this for

  • founder stock
  • early exercise planning
  • low current valuation grants
Taxable value if elected now$1,000
Possible taxable value later$200,000
Tax now estimate$370
Tax later estimate$74,000

This ignores forfeiture risk and later capital gain treatment.

Before you rely on the number

The election can accelerate tax.

It can help if value rises sharply later.

There is no refund if shares are forfeited.

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