Nicolson v. Commissioner
United States Tax Court
Petitioner's rights to subscribe at a bargain price to stock of his employer, given him in his capacity as an employee for the best interests of the company, held not to result in income on exercise of rights. Delbert B. Geeseman, 38 B. T. A. 258, followed.
1Opinion of the Court
OPINION.
Opper, Judge:
Although respondent’s contention is that this stock was received as a taxable dividend, we think the record makes it clear that it was issued to petitioner in his capacity as an employee and not as a stockholder at all, thus eliminating the necessity, for the purpose of dealing with it as a dividend, that it be viewed as a distribution of profits by the corporation to its stockholder as such. See Palmer v. Commissioner, 302 U. S. 63. The record seems to us to show that this stock was sold to petitioner as operating vice president because it was considered to be in the…
2Cases cited2 opinions
- Palmer v. CommissionerSupreme Court of the United States · 1937
- United States Steel Corp. v. CommissionerUnited States Tax Court · 1943
3Cited by3 opinions
- Commissioner of Internal Revenue v. Philip J. Lo BueCourt of Appeals for the Third Circuit · 1955
- Bowen v. CommissionerUnited States Tax Court · 1954
- Nicolson v. CommissionerUnited States Tax Court · 1949