What does IRC 83 state regarding property transferred for services?

The statement about IRC 83 accurately reflects the tax treatment of property transferred for services when the rights to that property are not subject to a substantial risk of forfeiture. Under IRC 83, the key point is that the income from the property transfer becomes taxable when the individual has a legally enforceable right to the property, and there are no conditions that would cause the property to be forfeited.

This means that once the individual receiving the property can fully access and utilize it without any risk of losing it due to certain contingencies, the value of that property should be included in their gross income for tax purposes. For example, if stock is granted as payment for services rendered and there are no restrictions that would cause that stock to be forfeited, then the value of the stock must be reported as income at that time.

In contrast, other options do not accurately describe the provisions of IRC 83, as the taxation occurs based on the risk of forfeiture and not simply at the time of transfer, nor does it provide exemptions or stipulations for immediate cash payments. Thus, recognizing the correct treatment under IRC 83 is crucial for understanding how income from property transfers is reported and taxed in relation to services provided.