Pagel, Inc. v. Commissioner
United States Tax Court
In connection with serving as an underwriter in a stock offering, P received cash and a warrant to purchase stock. P could not transfer or exercise the warrant until at least 13 months after the date of receipt, and there was no active trading of such warrants on any established market. P later sold the warrant to its sole shareholder. Held, sec. 83, I.R.C. 1954, is properly at issue.
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In connection with serving as an underwriter in a stock offering, P received cash and a warrant to purchase stock. P could not transfer or exercise the warrant until at least 13 months after the date of receipt, and there was no active trading of such warrants on any established market. P later sold the warrant to its sole shareholder. Held, sec. 83, I.R.C. 1954, is properly at issue. Held, further, under the provisions of sec. 1.83-7, Income Tax Regs., P must recognize ordinary income from the warrant upon P's sale of the warrant, not upon P's receipt. Held, further, no abuse of discretion…
1Opinion of the Court
Pagel, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Pagel, Inc. v. Commissioner
Docket No. 34122-85
United States Tax Court
91 T.C. 200; 1988 U.S. Tax Ct. LEXIS 102; 91 T.C. No. 18;
August 8, 1988; As amended August 17, 1988; As amended August 9, 1988 August 8, 1988, Filed
Decision will be entered under Rule 155.
In connection with serving as an underwriter in a stock offering, P received cash and a warrant to purchase stock. P could not transfer or exercise the warrant until at least 13 months after the date of receipt, and there was no active trading of such warrants on any…
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- United States v. CorrellSupreme Court of the United States · 1967
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