Enos v. Commissioner
United States Tax Court
The petitioner in 1947 received from his employer, E. W. Bliss Company, an option to purchase 25,000 shares of its unissued stock at a stated price. Petitioner subsequently purportedly assigned his rights thereunder to his wife and two daughters for a nominal consideration. In 1952 petitioner's wife and daughters surrendered the option rights to E. W. Bliss Company for $ 2 for each share covered thereby.
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The petitioner in 1947 received from his employer, E. W. Bliss Company, an option to purchase 25,000 shares of its unissued stock at a stated price. Petitioner subsequently purportedly assigned his rights thereunder to his wife and two daughters for a nominal consideration. In 1952 petitioner's wife and daughters surrendered the option rights to E. W. Bliss Company for $ 2 for each share covered thereby. Held, that the gain realized from the cancellation of the stock options constituted compensation taxable to petitioner in 1952.
1Opinion of the Court
OPINION.
Withey, Judge:
Respondent determined a deficiency in the petitioners’ income tax for 1952 in the amount of $60,495.57. The issue presented for our decision is the correctness of the respondent’s action in determining that gain realized from the cancellation of stock options during 1952 constituted compensation for the services of petitioner Robert C. Enos and was therefore taxable to him as ordinary income.
The case was submitted upon a stipulation of facts which is hereby adopted as our findings of fact and which may be summarized as follows:
Petitioners are husband and wife and…
2Cases cited11 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Helvering v. EubankSupreme Court of the United States · 1941
- Burnet v. LeiningerSupreme Court of the United States · 1932
6 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Bagley v. CommissionerUnited States Tax Court · 1985
- Le Vant v. CommissionerUnited States Tax Court · 1965
- Bagley v. CommissionerUnited States Tax Court · 1985
- Enos v. CommissionerUnited States Tax Court · 1958
- Le Vant v. CommissionerUnited States Tax Court · 1965