Lets say you’re working for a startup. You get 3% of restricted stock awards trued-up through the next round. What are the implications? Say you filed 83b and bought your equity for $100 (par value) and the startup gets diluted by 1/3. Does that mean you own 2/3 of the equity for $100 and but the remaining 1/3 is taxable like income? capital gains? magically goes into the already exercised stock? becomes options? 83b tells the IRS you’ve paid taxes on something that you might lose (restricted stock has reverse vesting) so you dont pay taxes at vest. #personalfinance #investments #startups #equity