Restricted Property

Restricted Property

Restricted Property means:
stock or other property transferred, under a deferred- compensation plan, by an employer to an employee at no cost or at a bargain price. The employee is taxed on the excess of the fair market value of the property over the amount, if any, paid for it. This excess is taxed (1) when the property is no longer subject to a substantial risk of forfeiture, or (2) when the property is transferable by the employee, whichever comes first. A special election allows the employee to have the excess taxed on the grant date rather than the later date. The employer deduction mirrors the tax treatment of the employee. Former IRC (check if this IRC provision is current here) §83.






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