McNamara v. Commissioner
United States Tax Court
In 1945, corporation gave one of its officers an option to purchase 12,500 shares of its stock at stated intervals over a two-year period at less than market value. Officer exercised option in 1946 and 1947 when the fair market value of the stock exceeded the option price.
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In 1945, corporation gave one of its officers an option to purchase 12,500 shares of its stock at stated intervals over a two-year period at less than market value. Officer exercised option in 1946 and 1947 when the fair market value of the stock exceeded the option price. Held: 1. Gain derived from the option was intended as compensation. 2. The intended compensation was the difference between the option price and the fair market value of the stock on the dates the option was exercised and the stock acquired. Connolly's Estate v. Commissioner, 135 F. 2d 64 (C. A. 6), affirming 45 B. T. A.…
1Opinion of the Court
OPINION.
Raum, Judge:
Petitioner became executive vice president and general manager of National Tea Company on March 21, 1945. Although he had an understanding at that time as to his compensation, no contract of employment was then entered into, presumably on account of the salary stabilization regulations, and he was merely given a “drawing account.” Pursuant to an executive order of the President of the United States issued on August 18, 1945, the Bureau of Internal Revenue on August 22, 1945, announced a relaxation of its salary stabilization rules. On the very next day the executive…
2Cases cited8 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Commissioner v. SmithSupreme Court of the United States · 1945
- Commissioner v. SmithSupreme Court of the United States · 1945
- Van Dusen v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1948
- Stone v. ComissionerUnited States Tax Court · 1953
3 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Frank v. CommissionerUnited States Tax Court · 1970
- Babbitt v. CommissionerUnited States Tax Court · 1955
- McNamara v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1954
- Lo Bue v. CommissionerUnited States Tax Court · 1954
- Commissioner of Internal Revenue v. Philip J. Lo BueCourt of Appeals for the Third Circuit · 1955
7 more not listed; retrieve them via the Exa API.