Source: http://www.law.cornell.edu/uscode/text/26/83?quicktabs_8=1
Timestamp: 2013-05-25 00:58:53
Document Index: 130459149

Matched Legal Cases: ['§ 83', '§ 321', '§ 1901', '§ 252', '§ 102', '§ 223', '§ 1827', '§ 11801', '§ 906', '§ 1901', '§ 1906', '§ 1906', '§ 102', '§ 1018', '§ 2', '§ 1855', '§ 2']

USC › Title 26 › Subtitle A › Chapter 1 › Subchapter B › Part II › § 83	prevnext
General rule If, in connection with the performance of services, property is transferred to any person other than the person for whom such services are performed, the excess of—
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—
Election An election under paragraph (1) with respect to any transfer of property shall be made in such manner as the Secretary prescribes and shall be made not later than 30 days after the date of such transfer. Such election may not be revoked except with the consent of the Secretary.
Substantial risk of forfeiture The rights of a person in property are subject to a substantial risk of forfeiture if such person’s rights to full enjoyment of such property are conditioned upon the future performance of substantial services by any individual.
Transferability of property The rights of a person in property are transferable only if the rights in such property of any transferee are not subject to a substantial risk of forfeiture.
Sales which may give rise to suit under section 16(b) of the Securities Exchange Act of 1934 So long as the sale of property at a profit could subject a person to suit under section 16(b) of the Securities Exchange Act of 1934, such person’s rights in such property are—
For purposes of determining an individual’s basis in property transferred in connection with the performance of services, rules similar to the rules of section 72
(w) shall apply.
Certain restrictions which will never lapse (1)
Valuation In the case of property subject to a restriction which by its terms will never lapse, and which allows the transferee to sell such property only at a price determined under a formula, the price so determined shall be deemed to be the fair market value of the property unless established to the contrary by the Secretary, and the burden of proof shall be on the Secretary with respect to such value.
Cancellation If, in the case of property subject to a restriction which by its terms will never lapse, the restriction is canceled, then, unless the taxpayer establishes—
Applicability of section This section shall not apply to—
a transfer to or from a trust described in section 401
(a) or a transfer under an annuity plan which meets the requirements of section 404
Holding period In determining the period for which the taxpayer has held property to which subsection (a) applies, there shall be included only the period beginning at the first time his rights in such property are transferable or are not subject to a substantial risk of forfeiture, whichever occurs earlier.
Certain exchanges If property to which subsection (a) applies is exchanged for property subject to restrictions and conditions substantially similar to those to which the property given in such exchange was subject, and if section 354, 355, 356, or 1036 (or so much of section 1031 as relates to section 1036) applied to such exchange, or if such exchange was pursuant to the exercise of a conversion privilege—
Deduction by employer In the case of a transfer of property to which this section applies or a cancellation of a restriction described in subsection (d), there shall be allowed as a deduction under section 162, to the person for whom were performed the services in connection with which such property was transferred, an amount equal to the amount included under subsection (a), (b), or (d)(2) in the gross income of the person who performed such services. Such deduction shall be allowed for the taxable year of such person in which or with which ends the taxable year in which such amount is included in the gross income of the person who performed such services.
(Added Pub. L. 91–172, title III, § 321(a),Dec. 30, 1969, 83 Stat. 588; amended Pub. L. 94–455, title XIX, §§ 1901(a)(15), 1906(b)(13)(A),Oct. 4, 1976, 90 Stat. 1765, 1834; Pub. L. 97–34, title II, § 252(a),Aug. 13, 1981, 95 Stat. 260; Pub. L. 97–448, title I, § 102(k)(1),Jan. 12, 1983, 96 Stat. 2374; Pub. L. 98–369, div. A, title II, § 223(c),July 18, 1984, 98 Stat. 775; Pub. L. 99–514, title XVIII, § 1827(e),Oct. 22, 1986, 100 Stat. 2851; Pub. L. 101–508, title XI, § 11801(a)(5),Nov. 5, 1990, 104 Stat. 1388–520; Pub. L. 108–357, title VIII, § 906(b),Oct. 22, 2004, 118 Stat. 1654.)
Section 16(b) of the Securities Exchange Act of 1934, referred to in subsec. (c)(3), is classified to section 78p
2004—Subsec. (c)(4). Pub. L. 108–357added par. (4).
1990—Subsec. (i). Pub. L. 101–508struck out subsec. (i) “Transition rules” which read as follows: “This section shall apply to property transferred after June 30, 1969, except that this section shall not apply to property transferred—
1986—Subsec. (e)(5). Pub. L. 99–514struck out “the cost of” before “group-life insurance”.
1983—Subsec. (c)(3). Pub. L. 97–448substituted “Securities Exchange Act of 1934” for “Securities and Exchange Act of 1934” in heading and text.
1976—Subsec. (b)(2). Pub. L. 94–455, § 1901(a)(15), struck out “(or, if later, 30 days after the date of the enactment of the Tax Reform Act of 1969)” after “after the date of such transfer”, and § 1906(b)(13)(A), “or his delegate” after “Secretary” wherever appearing.
Subsec. (d)(1), (2)(B). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.
Amendment by Pub. L. 108–357applicable to distributions on or after Oct. 22, 2004, see section 906(c) ofPub. L. 108–357, set out as a note under section 72 of this title.
Amendment by Pub. L. 98–369applicable to taxable years beginning after Dec. 31, 1983, see section 223(d)(1) ofPub. L. 98–369, set out as a note under section 79 of this title.
Section 252(c) ofPub. L. 97–34, as amended by Pub. L. 97–448, title I, § 102(k)(2), 96 Stat. 2374, provided that: “The amendment made by subsection (a) [amending this section] and the provisions of subsection (b) [set out below] shall apply to transfers after December 31, 1981.”
Amendment by section 1901(a)(15) ofPub. L. 94–455applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) ofPub. L. 94–455, set out as a note under section 2 of this title.
Section 321(d) ofPub. L. 91–172provided that: “The amendments made by subsections (a) and (c) [amending sections 402, 403, and 404 of this title] shall apply to taxable years ending after June 30, 1969. The amendments made by subsection (b) [enacting this section] shall apply with respect to contributions made and premiums paid after August 1, 1969.”
Section 1879(p) ofPub. L. 99–514, as amended by Pub. L. 100–647, title I, § 1018(q)(3),Nov. 10, 1988, 102 Stat. 3585, provided that:
“(1) Notwithstanding subsection (c) ofsection 252 of the Economic Recovery Tax Act of 1981 [section 252(c) ofPub. L. 97–34, set out above], the amendment made by subsection (a) of such section 252 [amending this section] (and the provisions of subsection (b) of such section 252 [set out below]) shall apply to any transfer of stock to any person if—
Section 556 ofPub. L. 98–369, as amended by Pub. L. 99–514, § 2, title XVIII, § 1855(b),Oct. 22, 1986, 100 Stat. 2095, 2882, provided that: “In the case of any transfer of property in connection with the performance of services on or before November 18, 1982, the election permitted by section 83(b) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] may be made, notwithstanding paragraph (2) of such section 83
(b), with the income tax return for any taxable year ending after July 18, 1984, and beginning before the date of the enactment of the Tax Reform Act of 1986 [Oct. 22, 1986 if—
The election shall contain that information required by the Secretary of the Treasury or his delegate for elections permitted by such section 83
(b). The period for assessing any tax attributable to a transfer of property which is the subject of an election made pursuant to this section shall not expire before the date which is 3 years after the date such election was made.”
Section 252(b) ofPub. L. 97–34, as amended by Pub. L. 99–514, § 2,Oct. 22, 1986, 100 Stat. 2095, provided, effective with respect to taxable years ending after Dec. 31, 1981, that: “For purposes of section 83 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954], property is subject to substantial risk of forfeiture and is not transferable so long as such property is subject to a restriction on transfer to comply with the “Pooling-of-Interests Accounting” rules set forth in Accounting Series Release Numbered 130 ((10/5/72) 37 FR 20937; 17 CFR 211.130) and Accounting Series Release Numbered 135 ((1/18/73) 38 FR 1734; 17 CFR 211.135).”