Connecticut Administrative Code › Title 12 - Taxation › 740(a) - INCOME TAX › Part II - Nonresident individuals › Section 12-711(b)-17 - Property transferred in connection with the performance of services

Current through July 10, 2024
(a) Connecticut adjusted gross income derived
				from or connected with sources within this state includes, to the extent
				provided in this section, income recognized under section 83 of the Internal
				Revenue Code on the transfer of property in connection with the performance of
				services, if, during the period beginning with the first day of the taxable
				year of the transferee during which such property was transferred thereto and
				ending with the last day of the taxable year of the transferee during which the
				rights of the person having the beneficial interest in such property first were
				transferable or first were not subject to a substantial risk of forfeiture,
				whichever occurs earlier (or, if an election is made under section 83(b)(1) of
				the Internal Revenue Code, the taxable year that such election is made), the
				transferee was performing such services within Connecticut. In determining
				whether the person was performing such services within Connecticut, the
				regulations of this Part shall apply.
(b) If, during the period described in
				subsection (a) of this section, the transferee's services were performed wholly
				within Connecticut, the amount by which the fair market value of the property,
				as determined under section 83(a) of the Internal Revenue Code, 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, exceeds the amount, if any, paid for such property,
				is derived from or connected with sources within this state. If an election is
				made under section 83(b)(1) of the Internal Revenue Code, the amount by which
				the fair market value of the property, as determined under section 83(b) of the
				Internal Revenue Code, exceeds the amount, if any, paid for such property, is
				derived from or connected with sources within this state.
(c) If, during the period described in
				subsection (a) of this section, the transferee's services were performed partly
				within and partly without Connecticut, the portion of the amount by which the
				fair market value of the property, as determined under section 83(a) of the
				Internal Revenue Code, 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, exceeds the amount,
				if any, paid for such property, that is derived from or connected with sources
				within this state is in the same ratio that the total compensation received
				from the transferor during such period for services performed in this state
				bears to the total compensation received from the transferor during such period
				for services performed both within and without this state. If an election is
				made under section 83(b)(1) of the Internal Revenue Code, the portion of the
				amount by which the fair market value of the property, as determined under
				section 83(b) of the Internal Revenue Code, exceeds the amount, if any, paid
				for such property, that is derived from or connected with sources within this
				state is in the same ratio that the total compensation received from the
				transferor during such period for services performed in this state bears to the
				total compensation received from the transferor during such period for services
				performed both within and without this state.
(d) The difference between (1) the amount
				realized on the disposition of the property and (2) the fair market value of
				the property, as determined under section 83(a) or (b) of the Internal Revenue
				Code, as the case may be, is income or loss that is not derived from or
				connected with sources within this state.
(e) While this section pertains to Section
				12-711(b)
				of the general statutes, for purposes of supplementary interpretation, as the
				phrase is used in Section
				12-2
				of the general statutes, the adoption of this section is authorized by Section
				12-701(c)
				of the general statutes.