Weaver v. Commissioner
United States Tax Court
1. Fair market value of stock which was issued for architectural services by corporations organized by petitioner, and which was immediately transferred by architect to petitioner pursuant to pre-existing agreement, held to be taxable to petitioner as ordinary income. 2. Such stock issued in the years in controversy held to have a basis equal to fair market value. 3. Redemptions of stock held to be essentially equivalent to the distribution of taxable dividends to the extent…
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1. Fair market value of stock which was issued for architectural services by corporations organized by petitioner, and which was immediately transferred by architect to petitioner pursuant to pre-existing agreement, held to be taxable to petitioner as ordinary income. 2. Such stock issued in the years in controversy held to have a basis equal to fair market value. 3. Redemptions of stock held to be essentially equivalent to the distribution of taxable dividends to the extent of earnings and profits, whether current or accumulated. 4. Distributions in excess of earnings and profits held not…
1Opinion of the Court
OPINION.
Opper, Judge:
Although the multiplex issues are distinct they are so interconnected that it is difficult to discuss them separately. For the sake of precision, however, an attempt will be made to do so.
1. Compensation.
Eespondent has charged petitioner with income as a result of the receipt by him of stock in four controlled building corporations, of which he was promoter, and which respondent says is compensation for services. The four situations are sufficiently similar for a single discussion.
Petitioner, as promoter, hired an architect for the project. The agreement was that a…
2Cases cited13 opinions
- General Utilities & Operating Co. v. HelveringSupreme Court of the United States · 1935
- Tauber v. CommissionerUnited States Tax Court · 1955
- Flanagan v. HelveringCourt of Appeals for the D.C. Circuit · 1940
- Boyle v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1951
- Lehman v. CommissionerUnited States Tax Court · 1951
8 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Bregin v. CommissionerUnited States Tax Court · 1980
- Schulman v. CommissionerUnited States Tax Court · 1989
- Zampini v. CommissionerUnited States Tax Court · 1991
- Bregin v. CommissionerUnited States Tax Court · 1980
- Metrocorp, Inc. v. CommissionerUnited States Tax Court · 2001
4 more not listed; retrieve them via the Exa API.