Omaha Nat'l Bank v. Commissioner
United States Board of Tax Appeals
Prior to 1918 the decedent was employed under contracts which, in addition to cash salary, gave him the right to purchase stock of his corporate employer at $50 per share.
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Prior to 1918 the decedent was employed under contracts which, in addition to cash salary, gave him the right to purchase stock of his corporate employer at $50 per share. The contracts were modified in 1918 to provide that decedent's account in respect of the stock should be credited with dividends declared thereon and if such dividends did not amount to $50 per share by stated times his account should be arbitrarily credited with sufficient amounts to make up the $50 on specified blocks of stock which would then be issued. In 1928, as the result of dividends and an arbitrary credit, 150…
1Opinion of the Court
*820OPINION.
Aeundell :
The petitioners contend that the delivery of the stock to Farrington in 1928 was in fulfillment of a right of purchase that he acquired in 1918, and that since that right was property no income resulted from its exercise. The appreciation in the value of the right, it is argued, is not income until realized by sale or exchange of the stock acquired by virtue of the right. The respondent, on the other hand, points to the several contracts and argues that they were essentially contracts of employment under which the stock was received by Farrington as compensation for services…
2Cases cited4 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Erskine v. CommissionerUnited States Board of Tax Appeals · 1932
- Old Colony Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Olson v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by1 opinion
- Omaha Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1934