Commissioner of Internal Revenue v. Philip J. Lo Bue

This is an appeal from a decision of the Tax Court, rendered on remand from the Supreme Court. The Supreme Court held that options granted an employee to purchase stock of his corporate employer yielded him taxable gain which “should be measured as of the time the options were exercised * * *. ” 351 U.S. 243, 249, 76 S.Ct. 800, 804, 100 L.Ed. 1142. The Court concluded its opinion with this observation and direction. “It is possible that a bona fide delivery of a binding promissory note could mark the completion of the stock purchase and that gain should be measured as of that date. Since…