Transamerica Corp. v. United States

OPINION ON STOCK OPTION ISSUE

PHILIP R. MILLER, Judge:

Question Presented

Section 421(a) of the Internal Revenue Code of 1954 (I.R.C.) provides generally that if a share of stock is transferred to an employee pursuant to his exercise of a stock option meeting the requirements of § 422(a) (relating to qualified stock options) or § 424(a) (relating to restricted stock options) no income shall result to the individual at the time of transfer of the stock to him, and no deduction under § 162 (relating to trade or business expenses) is allowable to the employer corporation, or its parent or its…