I have a client that received stock from their client (not employer) for services rendered. However the stock can not be cashed in for over a year. Would they need to report the income THIS year or when it is available to sell?
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Received stock for services rendered
Just thinking, but this would be income the year the stock was received. This would become the basis then, for when the stock was sold. -
Fair Market Value
Match what the company took as a deduction. Value is discounted by a bunch-expecially with restrictions of transfer and sale. Lack of a market and minority interest is increased a bunch with additional sale restrictions.Comment
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Stock
I would think the stock would be reported when it was available to use. If something received today FMV $20.00 not available for use until 1 year from now, then financial receipt is FMV 1 year from now and then reportable. Isn't that called "constructive income"?Comment
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