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shall be included in the gross income of the person who
performed such services in the first taxable year in
which the rights of the person having the beneficial
interest in such property are transferable or are not
subject to a substantial risk of forfeiture, whichever
is applicable. * * *
Section 1.83-1(a)(1), Income Tax Regs., provides that such
property is not taxable under section 83 until it (1) has been
transferred, and (2) becomes substantially vested in such person.
Section 1.83-3(a), Income Tax Regs., provides that property is
transferred when the person acquires a beneficial ownership in
such property. Section 1.83-3(e), Income Tax Regs., provides
that "property" under section 83 "includes a beneficial interest
in assets (including money) which are transferred or set aside
from the claims of creditors of the transferor, for example, in a
trust or escrow account." The record as a whole establishes that
the contributions in issue were transferred in connection with
the performance of services by Mrs. Lozon. It is stipulated that
Allstate made contributions under the profit sharing fund to a
trust for the benefit of Mrs. Lozon in the amounts of $89 in 1990
and $140 in 1991. These amounts were vested when made. It is
also stipulated that Allstate made contributions under its
pension plan to a trust for the benefit of Mrs. Lozon and that
she was vested in the amounts of $13,193 in 1990 and $16,843 in
1991.8 Therefore, unless an exception applies, Mrs. Lozon would
8 Mrs. Lozon had no portion of the pension plan vested in
1989.
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