the deduction equals the ordinary income recognized by the employee and the timing is based on whether or not sec. 83(b) is elected. the deduction equals the ordinary income recognized by the employee and is deducted on the vesting date regardless of the sec. 83(b) election. the employer does not receive a tax deduction for issuing restricted stock to employees. the deduction equals the ordinary income recognized by the employee and is deducted on the grant date regardless of the sec. 83(b) election.