588 '^ ^'^'- ^-
Ante, p. 586.
78 Stat. 111. 26 USC 6511.
Ante, p. 586.
Ante, p. 579.
PUBLIC LAW 91-172-DEC. 30, 1969
[33 g^^
" (1) SECTION 72(111)(5).—Section 72(m)(5) (relating to r^ alties applicable to certain amounts received by owner-employe \" shall be applied as if this part had not been enacted. ^^' " (2) OTHER ITEMS.—Except as otherwise provided in this MH the order and manner in which items of income or limitationc tax shall be taken into account in computing the tax imposed b^ this chapter on the income of any eligible individual to ^ho^ section 1301 applies for any computation year shall be determined under regulations prescribed by the Secretary or his deleo-ntp » and ^
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= (G) by redesignating subsection (g) as (f). (3) Section 6511(d)(2)(B) (ii) is amended— (A) by striking out "1302(e)(1)" and inserting in lipn thereof "1302(c)(1) "; and (B) by striking out "1302(e)(3)" and inserting in lipn thereof "1302 (c)(3) ". (e) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to computation years (within the meaning of section 1302(c)(1) of the Internal Revenue Code of 1954) beginning after December 31, 1969, and to base period years (within the meaning of section 1302(c)(3) of such Code) applicable to such computation years. Subtitle C—Restricted Property SEC. 321. RESTRICTED PROPERTY. (a) IN GENERAL.—Part II of subchapter B of chapter 1 (relating to items specifically included in gross income) is amended by adding after section 82 (as added by section 221(b) of this Act( the following new section: "SEC. 83. PROPERTY TRANSFERRED IN CONNECTION WITH PERFORM. ANCE OF SERVICES. " (a) 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— "(1) the fair market value of such property (determined without regard to any restriction other than a restriction which by its terms will never lapse) 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, over " (2) the amount (if any) paid for such property, shall be included in the gross income of the person who performed such services in the first taxable year in which the rights of the person having the beneficial interest in such property are transferable or are not subject to a a substantial risk of forfeiture, whichever is applicable. The preceding sentence shall not apply if such person sells or otherwise disposes of such property in an arm's length transaction before his rights in such property become transferable or not subject to a substantial risk of forfeiture. "(b) ELECTION TRANSFER.—
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To
INCLUDE
IN
GROSS
INCOME
I N YEAR OF
"(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— , , " (A) the fair market value of such property at the time 01 transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse), over
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