Apple Computer, Inc. v. Commissioner
United States Tax Court
P granted to certain employees nonstatutory stock options which did not have readily ascertainable fair market values at grant.
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P granted to certain employees nonstatutory stock options which did not have readily ascertainable fair market values at grant. P treated the income generated upon the exercise of the stock options as wages for purposes of the credit for increasing research activities under sec. 44F (now sec. 41), I.R.C. 1. Held, income generated upon the exercise of the nonstatutory stock options in question (spreads) constitutes "wages paid or incurred to an employee for qualified services performed by such employee" under sec. 44F(b)(2)(A)(i), I.R.C. 2. Held, further, the spreads qualify for the sec. 44F…
1Opinion of the Court
OPINION
JACOBS, Judge:
Respondent determined deficiencies in the consolidated income tax of Apple Computer, Inc. and Consolidated Subsidiaries for their 1981, 1982, and 1983 fiscal years. The parties filed cross-motions for partial summary judgment pursuant to Rule 121.1 Summary judgment is appropriate if the pleadings and other materials show that there is no genuine issue as to any material fact and a decision may be rendered as a matter of law. Rule 121(b). The parties agree, and the record reveals, that there is no genuine issue as to any material fact. Therefore, partial summary judgment…
2Cases cited12 opinions
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Demarest v. ManspeakerSupreme Court of the United States · 1991
- Don E. Williams Co. v. CommissionerSupreme Court of the United States · 1977
- United States v. Hughes Properties, Inc.Supreme Court of the United States · 1986
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3Cited by5 opinions
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