Venture Funding v. Commissioner
United States Tax Court
P transferred stock to its employees as compensation for services, and it claimed a deduction in the year of transfer for the value of the stock. None of P's employees included the value of the transferred stock in his or her gross income for the year of transfer. HELD: Sec. 83(h), I.R.C., does not allow P to deduct the reported amount in the year of transfer.
1Opinion of the Court
OPINION
Laro, Judge:
This case was submitted to the Court fully stipulated. See Rule 122. Petitioner petitioned the Court to redetermine respondent’s determination of deficiencies of $347,583 and $27,578 in its 1988 and 1989 Federal income taxes. We must decide whether section 83(h) prevents petitioner from currently deducting the value of stock that it transferred to its employees in 1988 as compensation for services. We hold it does.1 Unless otherwise indicated, section references are to the Internal Revenue Code in effect for the subject years. Rule references are to the Tax Court Rules of…
2Cases cited23 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- United States v. Ron Pair Enterprises, Inc.Supreme Court of the United States · 1989
- Connecticut National Bank v. GermainSupreme Court of the United States · 1992
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Caminetti v. United StatesSupreme Court of the United States · 1917
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3Cited by51 opinions
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- Norwest Corp. v. Comm'rUnited States Tax Court · 1998
- Suzy's Zoo's v. CommissionerUnited States Tax Court · 2000
- Californians Helping to Alleviate Med. Problems, Inc. v. Comm'rUnited States Tax Court · 2007
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