Swenson v. Commissioner
United States Tax Court
Holding Period. -- Sec. 421, Sec. 1222(3), I.R.C. 1954. -- On January 10, 1957, petitioner exercised his option to purchase 1,000 shares of Minnesota Mining and Manufacturing Company stock. The option provided that petitioner would have no rights of a stockholder and would have no interest in the shares until the certificates were issued.
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Holding Period. -- Sec. 421, Sec. 1222(3), I.R.C. 1954. -- On January 10, 1957, petitioner exercised his option to purchase 1,000 shares of Minnesota Mining and Manufacturing Company stock. The option provided that petitioner would have no rights of a stockholder and would have no interest in the shares until the certificates were issued. The certificates were issued to petitioner on January 16, 1957. On July 16, 1957, petitioner sold 700 shares on the New York Stock Exchange. Held, petitioner's holding period began January 16, 1957, and ended July 16, 1957; therefore, petitioner did not hold…
1Opinion of the Court
Train, Judge:
Respondent determined a deficiency in petitioners’ income tax for the calendar year 1957 in the amount of $14,607.86.
The issues for decision are:(1) Whether George W. S. Swenson realized compensation income on the disposition of stock acquired under an employee stock option plan by disposing of the stock within 6 months after the transfer of such stock to him; and(2) Whether George W. S. Swenson realized a short-term capital gain on the sale of the stock because he did not hold the stock for more than 6 months.
FINDINGS OF FACT.
Some of the facts have been stipulated and are hereby…
2Cases cited29 opinions
- Tyler v. United StatesSupreme Court of the United States · 1930
- Helvering v. San Joaquin Fruit & Investment Co.Supreme Court of the United States · 1936
- McFeely v. CommissionerSupreme Court of the United States · 1935
- Warburton v. WhiteSupreme Court of the United States · 1900
- First National Bank v. Gustin Minerva Consolidated Mining Co.Supreme Court of Minnesota · 1890
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3Cited by19 opinions
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- Pike v. CommissionerUnited States Tax Court · 1965
- Estate of Johnston v. CommissionerUnited States Tax Court · 1968
- Stephen D. Pahl Louise A. Pahl v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1998
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