Luckman v. Commissioner’s Empirical Analysis
1968
Citation profile
5 federal appellate ·
How this case has been cited
Cited by 14 later decisions — most recently March 2005
5 federal appellate ·
Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.
Relationships
Applies 26 U.S.C. § 332 · 26 U.S.C. § 421 · 26 U.S.C. § 61 (Payment-in-Kind Tax Treatment Act of 1983)
Relies on Commissioner of Internal Revenue v. South Texas Lumber Co · Commissioner v. LoBue · Commissioner v. Smith · Stein v. Commissioner · Stern Bros. & Co. v. Commissioner
Most-quoted passages
The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 14 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.
““ * * * [Special] treatment is limited to the ‘restricted stock option' for the purpose of excluding. cases where the option is not a true incentive device. Options which do not qualify as ‘restricted stock options’ will continue to be taxed under existing law. ****** “Since the options which qualify for special treatment are regarded as incentive devices rather than compensation, no deduction * * * is allowed the corporation under section 23(a) [of the 1939 Code] with respect to a transfer of stock pursuant to a restricted stock option.””
2 later decisions quote this exact passage““Stock options granted at less than fair market value to employees are sometimes recognized by both the accounting profession and respondent’s regulations as giving rise to ‘actual’ business expenses of corporations, as opposed to artificial deductions, created solely for purposes of computing taxable income. Cf. Grady, “Inventory of Generally Accepted Accounting Principles for Business Enterprises,” 7 Accounting Research Study 215; Finney & Miller, Principles of Accounting — Intermediate (6th ed. 1965); sec. 1.421-6(f), Income Tax Regs. Such actual expenses, when recognized for income tax purposes, are generally considered to reduce eor- porate earnings and profits available for dividends. Cf. Bittker, Federal Income Taxation of Corporations and Shareholders, sec. 5.04 (1965); sec. 1.312-6(a) and (b), Income Tax Regs. “Even where such actual expenses or losses of a corporation are not recognized for income tax purposes it is well settled that in the absence of statutory language to the contrary such items generally reduce earnings and profits. Cf. Bittker, supra; sec. 312(f), I.R.C.1954; sec. 1.312-7(b) (1), Income Tax Regs.; I.T. 3764, 1945 C.B. 188 ; Stern Brothers & Co., 16 T.C. 295 (1951); Estate of Esther M. Stein, 25 T.C. 940 (1956), affd. 250 F.2d 798 (C.A.2, 1957); Jacob M. Kaplan, 43 T.C. 580 , 599 (1965); I.T. 3253, 1939-1 C.B. (Part 1) 178; Sidney Stark, 29 T.C. 122 (1957).” 50 T.C. at 624 .”
1 later decision quote this exact passage“* * * the statutory language and legislative history of [Section] 421 [of the Internal Revenue Code of 1954] show that Congress did not intend for the exercise of restricted stock options to generate an expense, recognizable or otherwise. Thus, earnings and profits cannot be reduced.”
1 later decision quote this exact passage
How this case has been treated — in progress
Whether each later court followed, distinguished, criticized, or overruled this decision. The treatment classification (task #35) runs highest-cited cases first and lights up here as it reaches this one.