United States: Court Rules That Payment In Excess Of Fair Market Value Of Stock Is Compensation
The Tax Court has ruled in Brinkley v. Commissioner (T.C. Memo 2014-227) that a payment an employee received in excess of the fair market value of the stock he held was compensation instead of capital gain.
The case centered on the compensation of Brian Brinkley, a founder and chief technology officer of Zave Networks, Inc., which began business in 2006. In exchange for his services, he received restricted stock grants from the company, and he […]