Rosenberg v. Commissioner
United States Tax Court
Held, the petitioner Abraham Rosenberg did not realize taxable income upon exercise of a stock option received from his employer prior to February 26, 1945, where it was found that the option was given to enable him to acquire a proprietary interest in the employer corporation and not with the intent to compensate him for services.
1Opinion of the Court
OPINION.
Arundell, Judge:
We have before us the factual question whether an option to purchase stock was given to the petitioner Abraham Rosenberg by his employer prior to February 26, 1945, as compensation to be received upon exercise, or was given instead to enable him to acquire a proprietary interest in the employer corporation. This question, which is primarily a question of intent, arises because of the well-established principle of law that upon exercise of such an option the difference between the option price and the market value at the time of the exercise and receipt of the stock…
2Cases cited3 opinions
- Commissioner v. SmithSupreme Court of the United States · 1945
- Stone v. ComissionerUnited States Tax Court · 1953
- Rossheim v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1937
3Cited by16 opinions
- Babbitt v. CommissionerUnited States Tax Court · 1955
- Lo Bue v. CommissionerUnited States Tax Court · 1954
- Commissioner of Internal Revenue v. Philip J. Lo BueCourt of Appeals for the Third Circuit · 1955
- Kane v. CommissionerUnited States Tax Court · 1956
- Sorensen v. CommissionerUnited States Tax Court · 1954
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