If stock rights are taxable, the recipient has income to the extent of the fair market value of the rights.

Name: If stock rights are taxable, the recipient has income to the extent of the fair market value of the rights.
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When stock rights are considered taxable, the recipient must recognize income equal to the fair market value of those rights at the time they are received, as this value represents an increase in wealth subject to taxation under income tax principles.

If Stock Rights Are Taxable, the Recipient Has Income to the Extent