Kunsman v. Commissioner
United States Tax Court
Held, the surrender of restricted stock options by petitioner, who was a key employee of RCA, resulted in gain taxable as ordinary income. Held, further, the damage to petitioner's swimming pool caused by a storm in 1959 gave rise to no casualty loss deduction in a subsequent year (1962) simply because that was the year in which the pool was replaced.
1Opinion of the Court
OPINION
It is admitted that the petitioner realized gain in the amount of $40,439.10 when he was paid that sum for the surrender of his stock options in 1962. It is admitted that these options were issued to petitioner as compensation for services rendered RCA. It is respondent’s position that the income received was in the nature of compensation and taxable at ordinary rates. Petitioner contends this realized gain is to be taxed at capital gains rates due to the provisions of section 1234 (a), which provides as follows:
SEO. 1234. OPTIONS TO BUY OR SELL.(a) Tkeatment op Gain or Loss. — Gain or…
2Cases cited12 opinions
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Commissioner v. SmithSupreme Court of the United States · 1945
- Helvering v. OwensSupreme Court of the United States · 1939
- Elliott v. CommissionerUnited States Tax Court · 1963
- Jack I. Levant and May Levant v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1967
7 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Bagley v. CommissionerUnited States Tax Court · 1985
- Mitchell v. CommissionerUnited States Tax Court · 1976
- Rupprecht v. United StatesUnited States Court of Claims · 1987
- Pryor v. CommissionerUnited States Tax Court · 1987
- Bailey v. CommissionerUnited States Tax Court · 1983
10 more not listed; retrieve them via the Exa API.