26 U.S.C. § 82 — Reimbursement of moving expenses

Page 501 TITLE 26—INTERNAL REVENUE CODE § 82 other property in respect of the property to which such security was related, the value so re- stored (to the extent that, when added to the value so restored during prior taxable years, it does not exceed the amount of the loss described in paragraph (2)) shall, except as provided in subsection (b), be included in gross income for the taxable year in which such restoration oc- curs. (b) Reduction for failure to receive tax benefit The amount otherwise includible in gross in- come under subsection (a) in respect of any se- curity shall be reduced by an amount equal to the amount (if any) of the loss described in sub- section (a)(2) which did not result in a reduction of the taxpayer’s tax under this subtitle for any taxable year, determined under regulations pre- scribed by the Secretary. (c) Character of income For purposes of this subtitle— (1) Except as provided in paragraph (2), the amount included in gross income under this section shall be treated as ordinary income. (2) If the loss described in subsection (a)(2) was taken into account as a loss from the sale or exchange of a capital asset, the amount in- cluded in gross income under this section shall be treated as long-term capital gain. (d) Treatment under foreign expropriation loss recovery provisions This section shall not apply to any recovery of a foreign expropriation loss to which section 1351 applies. (Added Pub. L. 89–384, § 1(b)(1), Apr. 8, 1966, 80 Stat. 101; amended Pub. L. 94–455, title XIX, §§ 1901(b)(3)(K), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1793, 1834; Pub. L. 98–369, div. A, title II, § 211(b)(2), July 18, 1984, 98 Stat. 754.) Editorial Notes AMENDMENTS 1984—Subsec. (a). Pub. L. 98–369 substituted ‘‘801’’ for ‘‘802’’. 1976—Subsec. (b). Pub. L. 94–455, § 1906(b)(13)(A), struck out ‘‘or his delegate’’ after ‘‘Secretary’’. Subsec. (c)(1). Pub. L. 94–455, § 1901(b)(3)(K), sub- stituted ‘‘ordinary income’’ for ‘‘gain from the sale or exchange of property which is neither a capital asset nor property described in section 1231’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, see section 215 of Pub. L. 98–369, set out as an Effective Date note under section 801 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by section 1901(b)(3)(K) of Pub. L. 94–455 applicable with respect to taxable years beginning after Dec. 31, 1976, see section 1901(d) of Pub. L. 94–455, set out as a note under section 2 of this title. EFFECTIVE DATE Pub. L. 89–384, § 1(b)(3), Apr. 8, 1966, 80 Stat. 102, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: ‘‘The amendments made by this subsection [enacting this section] shall apply to tax- able years beginning after December 31, 1965, but only with respect to losses described in section 80(a)(2) of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] (as added by paragraph (1) of this subsection) which were sustained after December 31, 1958.’’ [§ 81. Repealed. Pub. L. 100–203, title X, § 10201(b)(1), Dec. 22, 1987, 101 Stat. 1330–387] Section, added Pub. L. 89–722, § 1(b)(1), Nov. 2, 1966, 80 Stat. 1152; amended Pub. L. 93–625, § 4(c)(1), Jan. 3, 1975, 88 Stat. 2111; Pub. L. 94–455, title VI, § 605(b), Oct. 4, 1976, 90 Stat. 1575; Pub. L. 99–514, title VIII, § 805(c)(1)(A), Oct. 22, 1986, 100 Stat. 2362, included in- crease in vacation pay suspense account in gross in- come. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal applicable to taxable years beginning after Dec. 31, 1987, see section 10201(c)(1) of Pub. L. 100–203, set out as an Effective Date of 1987 Amendment note under section 404 of this title. § 82. Reimbursement of moving expenses Except as provided in section 132(a)(6), there shall be included in gross income (as compensa- tion for services) any amount received or ac- crued, directly or indirectly, by an individual as a payment for or reimbursement of expenses of moving from one residence to another residence which is attributable to employment or self-em- ployment. (Added Pub. L. 91–172, title II, § 231(b), Dec. 30, 1969, 83 Stat. 579; amended Pub. L. 103–66, title XIII, § 13213(d)(3)(A), Aug. 10, 1993, 107 Stat. 474; Pub. L. 115–141, div. U, title IV, § 401(a)(34), Mar. 23, 2018, 132 Stat. 1186.) Editorial Notes AMENDMENTS 2018—Pub. L. 115–141 substituted ‘‘of moving ex- penses’’ for ‘‘for expenses of moving’’ in section catch- line. 1993—Pub. L. 103–66 substituted ‘‘Except as provided in section 132(a)(6), there shall’’ for ‘‘There shall’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 applicable to reim- bursements or other payments in respect of expenses incurred after Dec. 31, 1993, see section 13213(e) of Pub. L. 103–66, set out as a note under section 62 of this title. EFFECTIVE DATE Section applicable to taxable years beginning after December 31, 1969, except that it does not apply to mov- ing expenses paid or incurred before July 1, 1970, in con- nection with the commencement of work by the tax- payer as an employee at a new principal place of work of which the taxpayer had been notified by his em- ployer on or before December 19, 1969, see section 231(d) of Pub. L. 91–172, set out as an Effective Date of 1969 Amendment note under section 217 of this title. MOVING EXPENSES OF MEMBERS OF THE UNIFORMED SERVICES Withholding, reporting, inclusion within adjusted gross income, and deduction for reimbursement for moving expenses of members of the uniformed services, see section 2 of Pub. L. 93–490, Oct. 26, 1974, 88 Stat. 1466, set out as a note under section 217 of this title. Page 502 TITLE 26—INTERNAL REVENUE CODE § 83 § 83. Property transferred in connection with performance of services (a) General rule If, in connection with the performance of serv- ices, property is transferred to any person other than the person for whom such services are per- formed, 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 sub- ject to a substantial risk of forfeiture, which- ever occurs earlier, over (2) the amount (if any) paid for such prop- erty, shall be included in the gross income of the per- son who performed such services in the first tax- able year in which the rights of the person hav- ing the beneficial interest in such property are transferable or are not subject to a substantial risk of forfeiture, whichever is applicable. The preceding sentence shall not apply if such per- son sells or otherwise disposes of such property in an arm’s length transaction before his rights in such property become transferable or not sub- ject to a substantial risk of forfeiture. (b) Election to include in gross income in year of transfer (1) In general Any person who performs services in connec- tion with which property is transferred to any person may elect to include in his gross in- come for the taxable year in which such prop- erty is transferred, the excess of— (A) the fair market value of such property at the time of transfer (determined without regard to any restriction other than a re- striction which by its terms will never lapse), over (B) the amount (if any) paid for such prop- erty. If such election is made, subsection (a) shall not apply with respect to the transfer of such property, and if such property is subsequently forfeited, no deduction shall be allowed in re- spect of such forfeiture. (2) Election An election under paragraph (1) with respect to any transfer of property shall be made in such manner as the Secretary prescribes and shall be made not later than 30 days after the date of such transfer. Such election may not be revoked except with the consent of the Sec- retary. (c) Special rules For purposes of this section— (1) Substantial risk of forfeiture The rights of a person in property are sub- ject to a substantial risk of forfeiture if such person’s rights to full enjoyment of such prop- erty are conditioned upon the future perform- ance of substantial services by any individual. (2) Transferability of property The rights of a person in property are trans- ferable only if the rights in such property of any transferee are not subject to a substantial risk of forfeiture. (3) Sales which may give rise to suit under sec- tion 16(b) of the Securities Exchange Act of 1934 So long as the sale of property at a profit could subject a person to suit under section 16(b) of the Securities Exchange Act of 1934, such person’s rights in such property are— (A) subject to a substantial risk of for- feiture, and (B) not transferable. (4) For purposes of determining an individ- ual’s basis in property transferred in connec- tion with the performance of services, rules similar to the rules of section 72(w) shall apply. (d) Certain restrictions which will never lapse (1) Valuation In the case of property subject to a restric- tion which by its terms will never lapse, and which allows the transferee to sell such prop- erty only at a price determined under a for- mula, the price so determined shall be deemed to be the fair market value of the property un- less established to the contrary by the Sec- retary, and the burden of proof shall be on the Secretary with respect to such value. (2) Cancellation If, in the case of property subject to a re- striction which by its terms will never lapse, the restriction is canceled, then, unless the taxpayer establishes— (A) that such cancellation was not com- pensatory, and (B) that the person, if any, who would be allowed a deduction if the cancellation were treated as compensatory, will treat the transaction as not compensatory, as evi- denced in such manner as the Secretary shall prescribe by regulations, the excess of the fair market value of the property (computed without regard to the re- strictions) at the time of cancellation over the sum of— (C) the fair market value of such property (computed by taking the restriction into ac- count) immediately before the cancellation, and (D) the amount, if any, paid for the can- cellation, shall be treated as compensation for the tax- able year in which such cancellation occurs. (e) Applicability of section This section shall not apply to— (1) a transaction to which section 421 ap- plies, (2) a transfer to or from a trust described in section 401(a) or a transfer under an annuity plan which meets the requirements of section 404(a)(2), (3) the transfer of an option without a read- ily ascertainable fair market value, (4) the transfer of property pursuant to the exercise of an option with a readily ascertain- able fair market value at the date of grant, or (5) group-term life insurance to which sec- tion 79 applies.