Kane v. Commissioner
United States Tax Court
An option to purchase stock during periods of the husband's employment was given to the wife by the chief stockholder and chairman of the board of directors of the corporation which employed her husband. When the option was exercised in three instances, the market prices of the stock exceeded the option price. Upon the entire evidence, held, that the option to purchase the stock was intended as additional compensation for the husband's services to the corporation.
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An option to purchase stock during periods of the husband's employment was given to the wife by the chief stockholder and chairman of the board of directors of the corporation which employed her husband. When the option was exercised in three instances, the market prices of the stock exceeded the option price. Upon the entire evidence, held, that the option to purchase the stock was intended as additional compensation for the husband's services to the corporation. Held, further, that the excess of the market value of the stock over the option price in each year in which stock was purchased…
1Opinion of the Court
OPINION.
Harron, Judge:
The chief question is whether the option granted by Arde Bulova, the chairman of the board of directors of Bulova Watch Company, was given for the purpose of enabling Rose Kane to acquire a proprietary interest in that company, or was given as additional compensation to Joseph Kane for his services to Bulova Company, to be received in each year in which the option was exercised. The petitioners contend that the option was granted for the purpose of giving Rose a proprietary interest in the Bulova Company, and that, therefore, no taxable income, under section 22 (a) of…
2Cases cited9 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Burnet v. LeiningerSupreme Court of the United States · 1932
- Commissioner v. SmithSupreme Court of the United States · 1945
- Babbitt v. CommissionerUnited States Tax Court · 1955
4 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Enos v. CommissionerUnited States Tax Court · 1958
- Enos v. CommissionerUnited States Tax Court · 1958
- Joseph Kane v. Commissioner of Internal Revenue, (Two Cases). Commissioner of Internal Revenue v. Rose KaneCourt of Appeals for the Second Circuit · 1956
- Kane v. CommissionerUnited States Tax Court · 1956
- Watson v. CommissionerUnited States Tax Court · 1960