Van Dusen v. Commissioner of Internal Revenue

BONE, Circuit Judge.

Petitioner seeks review of a decision of the Tax Court. The question presented is whether petitioner realized taxable income when, pursuant to an option granted by the president of the corporation by which petitioner was employed, petitioner purchased stock of the corporation from the president personally at less than market value.

The relevant facts were in large part stipulated by the parties. On December 10, 1934 petitioner entered the employ of the Consolidated Aircraft Corporation (hereinafter referred to as the corporation) as its factory manager at a salary of $9,000…