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property over the amount, if any, that the taxpayer paid
for such property is included in the taxpayer's gross
income.
Section 83(b) allows a taxpayer to elect to include
in gross income in the year of receipt the value of the
property transferred in exchange for services regardless
of whether his or her rights in the property are trans-
ferable or subject to a substantial risk of forfeiture.
Section 83(b) provides as follows:
(b) ELECTION TO INCLUDE IN GROSS INCOME IN YEAR
OF TRANSFER.--
(1) In General.--Any person who performs
services in connection with which property is
transferred to any person may elect to include
in his gross income, for the taxable year in
which such property is transferred, the excess
of--
(A) the fair market value of
such property at the time of transfer
(determined without regard to any
restriction other than a restriction
which by its terms will never lapse),
over
(B) the amount (if any) paid for such
property.
If such election is made, subsection (a) shall
not apply with respect to the transfer of such
property, and if such property is subsequently
forfeited, no deduction shall be allowed in
respect of such forfeiture.
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