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so you got the restricted property restricted property is property that has certain restrictions that affect its value if you receive restricted stock or other property for services performed the fair market value of the property in excess of your cost is included in your income on Schedule C when the Restriction is lifted so in other words it becomes a little bit difficult to Value the restricted property sometimes so when the Restriction is lifted then you might have an income situation in that area or that particular case which is somewhat of a more unusual kind of transaction right so however you can choose to be taxed in the year you receive the property for more information on including restricted property in income you can see publication 525 taxable and non-taxable income gains and losses do not report on Schedule C a gain or loss from the disposition of happily that is neither neither stock and trade nor held primarily for sale to customers instead you must report these gains