Michaelsen v. New York State Tax Commission

OPINION OF THE COURT

Kane, J. P.

The facts of this case are not disputed. In 1968, petitioner James A. Michaelsen,* then a senior executive and corporate officer with Avon Products, Inc., in New York City (Avon), was granted certain stock options by his employer under an employee stock option plan. Pursuant to this qualified stock option *390plan (see, 26 USC § 422), petitioner purchased 3,000 shares of Avon capital stock on March 13, 1972 and another 3,000 shares of Avon capital stock on February 22, 1973. In 1973, petitioner sold these 6,000 shares and derived a gain therefrom of $179,761. As…