Shamburger v. Commissioner
United States Tax Court
An employer sold warrants to the petitioners for nominal amounts in order to secure better services from them. The petitioners later sold the warrants at a substantial profit. Held, the petitioners realized compensation when they sold the warrants, which did not have a readily ascertainable fair market value at the time the petitioners acquired them from their employer.
1Opinion of the Court
Wiles, Judge: *
Respondent has determined the following deficiencies in petitioners’ income tax:
Name Year Amount
Bobby F. Shamburger and Bobbye R. Shamburger, docket No. 6448-70_ [1963 $4, 083. 63 11964 34, 056. 77 1965 1, 767; 93
Frank L. Shamburger and Cladie Shamburger, deceased, Frank L. Shamburger, surviving spouse, docket No. 6447-70- 1964 1,715. 17
Frank L. Shamburger and Cladie Shamburger, deceased, Frank L. Shamburger, surviving spouse, docket No. 2187-71- 1963 23, 912. 82
The only issue remaining for our decision is whether petitioners realized ordinary income or long-term capital gain…
2Cases cited4 opinions
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Stone v. ComissionerUnited States Tax Court · 1953
- Commissioner of Internal Revenue v. Stone's EstateCourt of Appeals for the Third Circuit · 1954
- Colton v. WilliamsDistrict Court, N.D. Ohio · 1962
3Cited by17 opinions
- Pagel, Inc. v. CommissionerUnited States Tax Court · 1988
- Centel Communications Co. v. CommissionerUnited States Tax Court · 1989
- Bagley v. CommissionerUnited States Tax Court · 1985
- Mitchell v. CommissionerUnited States Tax Court · 1976
- Frank L. Shamburger v. Commissioner of Internal Revenue, Bobby F. Shamburger and Bobbye R. Shamburger v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1975
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