Kolom v. Comm'r
United States Tax Court
Held, for purposes of the minimum tax provisions of secs. 56 and 57(a)(6), I.R.C. 1954, the fair market value of relatively small amounts of stock acquired through the exercise of qualified stock options by a taxpayer subject to the insider trading provisions of sec. 16(b), Securities Exchange Act of 1934, is the mean price at which the stock was sold on the New York Stock Exchange on the date of exercise of the stock options.
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Held, for purposes of the minimum tax provisions of secs. 56 and 57(a)(6), I.R.C. 1954, the fair market value of relatively small amounts of stock acquired through the exercise of qualified stock options by a taxpayer subject to the insider trading provisions of sec. 16(b), Securities Exchange Act of 1934, is the mean price at which the stock was sold on the New York Stock Exchange on the date of exercise of the stock options. Held, further, the minimum tax provisions of secs. 56 and 57(a)(6) as applied to the facts of this case are not unconstitutional. Held, further, the determination of…
1Opinion of the Court
Scott, Judge:
Respondent determined a deficiency of $42,489 in petitioners’ Federal income tax for the calendar year 1972. By amendment to answer, respondent claimed an increased deficiency of $1,303, making the total deficiency in issue $43,792. The increased deficiency resulted from a recomputation of income subject to the minimum tax based on the mean price of stock with respect to which options were exercised rather than the closing price on the New York Stock Exchange. The increased deficiency is not an issue separate from the issues with respect to the deficiency as determined in the…
2Cases cited22 opinions
- United States v. CartwrightSupreme Court of the United States · 1973
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Commissioner v. SmithSupreme Court of the United States · 1945
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Marie H. Hamm v. Commissioner of Internal Revenue, William Hamm, Jr. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
17 more not listed; retrieve them via the Exa API.
3Cited by52 opinions
- Graff v. CommissionerUnited States Tax Court · 1980
- Jackie L. And Janet G. McDonald v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1985
- Aaron L. Kolom and Serita Kolom v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- Bank One Corp. v. Comm'rUnited States Tax Court · 2003
- Pekar v. CommissionerUnited States Tax Court · 1999
47 more not listed; retrieve them via the Exa API.