Hawke v. Commissioner
United States Board of Tax Appeals
1. For a number of years prior to 1930 the petitioner was employed as manager of a branch store of J. C. Penney Co. at Modesto, California, under contracts which enabled him to purchase shares of stock of the company at prices less than their fair market value. In 1928 and 1929 he acquired under the contracts a number of shares of the stock at much less than their fair market value.
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1. For a number of years prior to 1930 the petitioner was employed as manager of a branch store of J. C. Penney Co. at Modesto, California, under contracts which enabled him to purchase shares of stock of the company at prices less than their fair market value. In 1928 and 1929 he acquired under the contracts a number of shares of the stock at much less than their fair market value. He did not include in his income tax returns for those years any amount in respect of the acquisition of the shares. Held, that on the sale of some of the shares by the petitioner in 1930 and 1931 the basis for…
1Opinion of the Court
*789OPINION.
Smith :
The first question for our determination in these proceedings is whether, in computing petitioner’s gain or loss on the sales in 1930 and 1931 of shares of stock of the J. C. Penney Co. which he had acquired in 1928 and 1929 under his contracts with the company, the basis is the amount of cash which he paid to the company for the shares, or their fair market value on the dates of acquisition. Section 113 (a) of the Revenue Act of 1928 provides the basis for determining gain or loss as follows:(a) Property acquired after February 88, 1913. — The basis for determining the gain or…
2Cases cited8 opinions
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- R. H. Stearns Co. v. United StatesSupreme Court of the United States · 1934
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- Helvering v. SalvageSupreme Court of the United States · 1936
- Burnet v. HuffSupreme Court of the United States · 1933
3 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Hawke v. CommissionerUnited States Board of Tax Appeals · 1937
- Larkin v. CommissionerUnited States Board of Tax Appeals · 1942
- Legal Authority of the Department of the Treasury to Issue Regulations Indexing Capital Gains for Inflation, Department of Justice Office of Legal Counsel1992
- Sailer v. CommissionerUnited States Tax Court · 1948
- Welch v. CommissionerUnited States Tax Court · 1960