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Restricted Property
Restricted Property Dividends Stock
In most cases, if you receive Dividends received on Stock you elected to
property for your services, you restricted stock.
must include its fair market value include in income.
in your income in the year you
receive the property. However, if Dividends you receive on restricted Dividends you receive on restricted
you receive stock or other property stock are treated as compensation stock you elected to include in your
that has certain restrictions that and not as dividend income. Your income in the year transferred are
affect its value, you don’t include employer should include these treated the same as any other
the value of the property in your payments on your Form W-2. dividends. Report them on your
income until it has substantially return as dividends. For a
vested. (Although you can elect to discussion of dividends, see Pub.
include the value of the property in 550, Investment Income and
your income in the year it’s Expenses. For information on how
transferred to you.) For more to treat dividends reported on both
information, see Restricted your Form W-2 and Form 1099-DIV,
Property in Pub. 525. see Dividends received on
restricted stock in Pub. 525.
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