Court Opinion

ID: 9465403
Source: CourtListenerOpinion
Date Created: 2023-08-05 00:45:31.85577+00
Date Added: 2024-06-11T17:39:09.765754
License: Public Domain

PEIRSON M. HALL, District Judge,
concurring:
Somehow or other it does not seem quite right that the Appellant is denied the advantage which he anticipated when he took a reduction of $6,000 a year in salary in consideration of securing in return therefor an advantage of capital gains tax over ordinary income tax.
But, the option was clearly subject to the restriction and condition that Mitchell remain in Royal Industries, Inc.’s employ for at least a year, and the Tax Court has concluded that that condition had “a significant effect upon the fair market value of the option.” The uncertainties of life alone which go with such an executory contract restrict the present market value of the optioned stock. That finding is not clearly erroneous and should not be disturbed.
I concur in the results.