The Crimson Bench

ProFinance · Simulator

83(b) Election Simulator

Why founders file within 30 days.

Assumptions

Tax if 83(b) filed

$3,700

Tax if not filed (at vest)

$70,300

Ordinary income avoided

$66,600

LineAmount
Tax now (83b)$3,700
Tax at vest (no election)$70,300
Difference$66,600

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Built by The Crimson Bench · Educational model, not financial advice

About the 83(b) Election Simulator

Compare the tax of filing an 83(b) election at grant versus being taxed as equity vests. Educational only.

It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.

How the 83(b) Election Simulator Works

The model takes 4 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.

The Inputs

AssumptionExample value
Shares100,000
Value / share at grant$0.1
Value / share at vest$2
Ordinary tax rate37%

Worked Example

Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.

Tax if 83(b) filed

$3,700

Tax if not filed (at vest)

$70,300

Ordinary income avoided

$66,600

LineAmount
Tax now (83b)$3,700
Tax at vest (no election)$70,300
Difference$66,600

The Operator's Read

Filing an 83(b) within 30 days pays tiny tax now on low-value stock and starts the capital-gains clock — converting future appreciation from ordinary income to capital gains. Miss the 30-day window and you can't undo it. Educational only, not tax advice.

Assumptions & Limitations

  • The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
  • Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
  • It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
  • This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.

Frequently Asked Questions

What does the 83(b) Election Simulator calculate?

Compare the tax of filing an 83(b) election at grant versus being taxed as equity vests. Educational only. It takes 4 assumptions — Shares, Value / share at grant, Value / share at vest, Ordinary tax rate — and returns Tax if 83(b) filed, Tax if not filed (at vest), Ordinary income avoided, along with a full projection table you can export.

How do I use the 83(b) Election Simulator?

Enter your own figures in the input fields above — Shares, Value / share at grant, Value / share at vest, and the rest. The model recalculates instantly and shows the resulting Tax if 83(b) filed and full breakdown. No sign-up needed to run it.

Is the 83(b) Election Simulator free?

Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.

What's the difference between this and a free calculator?

A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.

Who built the 83(b) Election Simulator?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.

Is this financial advice?

No. The 83(b) Election Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.

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The Crimson Bench · Est. 2002 · Founded in New York City

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