I am granted a certain amount of RSU's every year, this year being the first. They vest at 25% after one year, and then 1/16th of grant every one month period after that. My question is to tax implications, and specifically the Section 83(b) Election.
My understanding is that I can make that election to pay taxes now (even though they aren't vested) based on the dollar value at the time they are granted? Now, our stock price has already gone up significantly since they were granted to me. Assuming our price is still high when I sell the RSUs in another 10 months (when first chunk vests), would I not pay any taxes on the gains because I already claimed them as income? Or, would those gains then be capitol gains only? Also, what happens if I quit / get terminated after paying taxes on un-vested shares? Do I lose those taxes, or do I get it back in a refund next year? Or would it be a deduction next year?