Restricted Stock Plan

Restricted Stock Plan

Restricted Stock Plan means:
a plan whereby stock or other property is transferred by an employer to an employee in connection with the performance of services. A stock option plan under which the transferred stock option is subject to restrictions regarding transferability and to substantial risk of forfeiture. The property is subject to restrictions regarding transferability and to substantial risk of forfeiture. Restricted stock is includable in the gross income of the employee in the first taxable year in which the rights become transferable or are no longer subject to forfeiture. Restricted stock is includable in the gross income of the employee in the first taxable year in which the rights become transferable or no longer subject to forfeiture. An employee can elect to have the value of the restricted stock in excess of any amount paid for the stock treated as taxable income in the year received. The effect of this election is to treat any further appreciation of the stock as capital gain upon disposition.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.


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