I'm cofounding the startup and not putting in any money, only Intellectual Property. That IP was valued at $390,000 but I didn't actually contribute any money. In theory, that means I paid $1.30 in IP per share received. Now, in my Section 83(b) election form, it's asking how much I paid. Par value for the shares is $0.0001 per share. If I indicate that I paid $1.30 per share then the Section 83(b) would show a massive loss, which doesn't seem right.
Calculations below:
The fair market value of the Shares at the time of the transfer to the undersigned: $[ 0.0001 ] per Share x [ 300000 ] Shares = $[ 30 ].
The amount paid for the Shares transferred: $[ 1.30 ] per Share x [ 300000 ] Shares = $[ 390000 ].
The amount to include in gross income is: $[ -389970 ].
