Hirsch v. Commissioner
United States Tax Court
1. In 1961 petitioner received Pacific stock pursuant to his exercise of a "nonstatutory stock option," which option had no ascertainable market value when it was issued. When he exercised the option, petitioner was required to, and did, represent that he would not sell the shares for a period of 6 months.
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1. In 1961 petitioner received Pacific stock pursuant to his exercise of a "nonstatutory stock option," which option had no ascertainable market value when it was issued. When he exercised the option, petitioner was required to, and did, represent that he would not sell the shares for a period of 6 months. Subsequently he was put on notice by the SEC that any sale of the shares without prior registration might be in violation of the Securities and Exchange Act of 1933. Held, on the basis of the above facts petitioner acquired and held the stock, at all relevant times, subject to a…
1Opinion of the Court
FokResteR, Judge:
Respondent has determined deficiencies in petitioners’ income taxes for the years 1961 through 1963 in the following amounts:
Taxpayer Year Deficiency
Ira Hirsch_ 1961 |4, 943. 02
Gloria Hirsch_ 1961 4, 799. 02
Ira and Gloria Hirsch_ 1962 4, 608. 66
Ira and Gloria Hirsch_ 1963 13, 570. 92
Concessions have been made by both parties. The only issues remaining are—
Whether the taxpayers received taxable income upon the exercise of certain stock options.
Whether a $33,000 payment made to Ira Hirsch constituted ordinary income or an amount received from the sale or exchange of a capital…
2Cases cited9 opinions
- Estate of Craig M. Smith, Deceased, Ruth E. Smith v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- Clarence Austin v. Otis SmithCourt of Appeals for the D.C. Circuit · 1962
- Farr v. CommissionerUnited States Tax Court · 1948
- Sloane v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Smith v. CommissionerUnited States Tax Court · 1959
4 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Estate of Gilford v. CommissionerUnited States Tax Court · 1987
- Jackie L. And Janet G. McDonald v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1985
- Estate of Piper v. CommissionerUnited States Tax Court · 1979
- Frank v. CommissionerUnited States Tax Court · 1970
- M. P. Frank and Beatrice Frank v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1971
22 more not listed; retrieve them via the Exa API.