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TITLE 26-INTERNAL REVENUE CODE (2) Vacation pay The amount of any increase in the suspense account required by paragraph (2)(B) of sec- tion 463(c) (relating to accrual of vacation pay). (Added Pub. L. 89-722, § 1(b)(1), Nov. 2, 1966, 80 Stat. 1152, and 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.) AMENDMENTS 1976-Par. (1). Pub. L. 94-455 substituted "section 166(f)" for "section 166(g)". 1975-Pub. L. 93-625 incorporated existing provi. sions in introductory text and provisions designated as par. (1) and added par. (2). EFFECTIVE DATE or 1976 AMENDMENT Amendment by Pub. L. 94-455 applicable to guaran- tees made after Dec. 31, 1975, in taxable years begin- ning after such date, see section 605(c) of Pub. L. 94- 455, set out as an Effective Date of 1976 Amendment note under section 166 of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 93-625 applicable to taxable years beginning after Dec. 31, 1973, or applicable to taxable years ending after Dec. 31, 1972, where tax- payer maintained an account for vacation pay under section 97 of Technical Amendments Act of 1958, as amended [set out as a note under section 162 of this title], for his last taxable year ending before Jan. 1, 1973, see section 4(d) of Pub. L. 93-625, set out as an Effective Date note under section 463 of this title. EFFECTIVE DATE Section applicable, except as otherwise provided, to taxable years ending after Oct. 21, 1965, see section 2 of Pub. L. 89-722, set out as an Effective Date of 1966 Amendment note under section 166 of this title. SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 166 of this title. § 82. Reimbursement for expenses of moving There shall be included in gross income (as compensation for services) any amount received or accrued, directly or indirectly, by an individ- ual as a payment for or reimbursement of ex- penses of moving from one residence to another residence which is attributable to employment or self-employment. (Added Pub. L. 91-172, title II, § 231(b), Dec. 30, 1969, 83 Stat. 579.) EFFECTIVE DATE Section applicable to taxable years beginning after December 31, 1969, except that it does not apply to moving expenses paid or incurred before July 1, 1970, in connection with the commencement of work by the taxpayer as an employee at a new principal place of work of which the taxpayer had been notified by his employer 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 ser- vices, 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. § 83. Property transferred in connection with perfor- mance of services (a) General rule If, in connection with the performance of ser- vices, 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 (deterr.ined 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 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 sub- ject to a substantial risk of forfeiture, which- ever is applicable. The preceding sentence shall not apply if such person sells or other- wise 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 to include in gross income in year of transfer (1) In general Any person who performs services in con- nection 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 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 property. If such election is made, subsection (a) shall not apply with respect to the transfer of such property, and if such property is subsequent- ly forfeited, no deduction shall be allowed in respect of such forfeiture. (2) Election An election under paragraph (1) with re- spect to any transfer of property shall be made in such manner as the Secretary pre- scribes 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 Secretary. (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 property are conditioned upon the future per- formance of substantial services by any indi- vidual. Page 107