Commissioner of Internal Revenue v. Lo Bue, 12580.
| Decision Date | 08 July 1958 |
| Docket Number | No. 12580.,12580. |
| Citation | 256 F.2d 735 |
| Parties | COMMISSIONER OF INTERNAL REVENUE, Petitioner, v. Philip J. LO BUE, Respondent. |
| Court | U.S. Court of Appeals — Third Circuit |
Kenneth E. Levin, Washington, D. C. (Charles K. Rice, Asst. Atty. Gen., Lee A. Jackson, Melva M. Graney, Attys., Dept. of Justice, Washington, D. C. on the brief), for petitioner.
Richard Barrett, Boston, Mass., for respondent.
Before KALODNER, STALEY and HASTIE, Circuit Judges.
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. 351 U.S. at page 250, 76 S.Ct. at page 804.
The Tax Court has now found that the option was exercised when the employee so advised the corporation and gave it his unconditional promissory note, payable at a future date, for the stock, although the certificates were not delivered until the notes were paid during the next taxable year. 28 T.C. 1317. In the circumstances of this case as outlined in the opinion of the Tax Court and for the reasons stated by the Tax Court we think this was a permissible and proper conclusion.
The judgment will be affirmed.
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Swenson v. Comm'r of Internal Revenue, Docket No. 81911.
...affd. 118 F.2d 283 (C.A. 5, 1941); Estate of James S. Ogsbury, 28 T.C. 93 (1947); Philip J. LoBue, 28 T.C. 1317 (1957), affd. 256 F.2d 735 (C.A. 3, 1958). Petitioner contends the rule does not depend upon any right of specific performance, and it has nothing to do with formalities of title ......
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Swenson v. CIR
...into full ownership unless defeated by a breach of contract by the other contracting party. Philip J. Lo Bue, 28 T.C. 1317, aff'd, 3 Cir., 256 F.2d 735; Mayer v. Donnelly, 5 Cir., 247 F.2d 322; C.A. Sporl & Co. v. Commissioner, 40 B.T.A. 829, aff'd, 5 Cir., 118 F.2d 283; Commissioner v. Rob......
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Becker v. CIR
...as he must, that the taxpayer "acquired" the stock when the taxpayer's acceptance became binding on the Company. See C. I. R. v. LoBue, 256 F.2d 735 (C.A.3, 1958), affirming 28 T.C. 1317; C. I. R. v. Ogsbury's Estate, 258 F.2d 294, 72 A.L.R.2d 1348 (C.A.2, 1958); Swenson v. C. I. R., 309 F.......
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McNatt v. Commissioner
...an employee. After remand in the LoBue case, we held in Philip J. LoBue Dec. 22,600, 28 T. C. 1317 (1957), affd. 58-2 USTC ¶ 9678 256 F. 2d 735 (C. A. 3, 1958), that LoBue exercised his option when he gave notes for the stock which the option gave him the right to purchase, and, thereby bec......