Arthur and Marla, accountants at a tech company in California, are debating the tax rules under section 83. Their company routinely issues stock and stock options as part of employees' compensation. Which of the following is false regarding an 83(b) election?

Question 45 options:

	The election freezes the value of the employee's compensation as of the grant date.
	The election is an important tax-planning tool if the stock is expected to increase in value.
	The election must be made within 30 days of the grant date.
	If an employee leaves before the vesting date, any loss is limited to $3,000.