Estate of Ogsbury v. Commissioner
United States Tax Court
As part of his contract of employment, petitioner received an unassignable option to purchase stock of his employer corporation at a bargain price. The option which was to expire December 31, 1945, permitted petitioner to delay payment and passage of title to the stock after exercise for so long as he was still employed by the corporation or for 6 months after his death if he died while in the employ of the corporation.
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As part of his contract of employment, petitioner received an unassignable option to purchase stock of his employer corporation at a bargain price. The option which was to expire December 31, 1945, permitted petitioner to delay payment and passage of title to the stock after exercise for so long as he was still employed by the corporation or for 6 months after his death if he died while in the employ of the corporation. However, upon the exercise of the option, petitioner became unconditionally obligated to pay a certain amount for the stock and, upon payment, the corporation was…
1Opinion of the Court
OPINION.
Kern, Judge:
The major issue presented for decision herein is whether petitioner received compensation by means of a stock option granted to him by his employer, Fairchild, in the year in which the option was exercised (1945) or in the year in which payment and transfer of stock was made (1948). If we should determine that petitioner received compensation in 1948, when payment and transfer of the stock was accomplished, then we must determine the fair market value of the stock as of the date of the transfer, December 8,1948.
The petitioner’s position is that he received extra…
2Cases cited11 opinions
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Commissioner v. SmithSupreme Court of the United States · 1945
- Lucas v. North Texas Lumber Co.Supreme Court of the United States · 1930
- Commissioner of Internal Revenue v. SegallCourt of Appeals for the Sixth Circuit · 1940
- Blau v. OgsburyCourt of Appeals for the Second Circuit · 1954
6 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Anthony Theophilos Patricia A. Theophilos v. Commissioner Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1996
- George W. S. Swenson and Ruth E. Swenson v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Swenson v. CommissionerUnited States Tax Court · 1961
- Commissioner of Internal Revenue v. Estate of James S. Ogsbury, Deceased, Florence N. Ogsbury, and Florence N. Ogsbury, Surviving WifeCourt of Appeals for the Second Circuit · 1958
- LoBue v. CommissionerUnited States Tax Court · 1957
9 more not listed; retrieve them via the Exa API.