Basic Federal Income Taxation: Gross Income: Receipt of Property as Compensation

This lesson will focus on Section 83(a)-(b) of the Internal Revenue Code, property transferred in connection with the performance of services, with practice questions.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Explain the amount of compensation income included under § 83(a).
2. Explain the effect of a § 83(b) election.
3. Explain the effect of an arm's length transfer of property by an employee when original receipt of the property was governed by § 83.