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v. Commissioner, 117 T.C. 237, 242 (2001), affd. 65 Fed. Appx.
508 (5th Cir. 2003); sec. 1.83-7(a), Income Tax Regs.
Caselaw establishes that a restriction on the
transferability of property does not affect the timing of income
inclusion or the amount of income required to be included under
section 83 if the property is not subject to a substantial risk
of forfeiture. See Pledger v. Commissioner, 71 T.C. 618 (1979),
affd. 641 F.2d 287 (5th Cir. 1981); Sakol v. Commissioner, 67
T.C. 986 (1977), affd. 574 F.2d 694 (2d Cir. 1978); Koss v.
Commissioner, T.C. Memo. 1989-330, affd. 908 F.2d 962 (3d Cir.
1990).
Under section 83(c)(3), if a taxpayer selling his shares of
stock could be subject to a suit under section 16(b) of the
2(...continued)
any person other than the person for whom such services
are performed, the excess of--
(1) the fair market value of such property
(determined without regard to any restriction other
than a restriction which by its terms will never lapse)
at the first time 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 occurs earlier, over
(2) the amount (if any) paid for such property,
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. * * *
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