Effective Date of Critical to Valuation of Stock

Business Valuation UpdateVol. 2 No. 7
Legal and Court Case Update
July 1996
6091 Nondeposit Trust Facilities
523991 Trust, Fiduciary, and Custody Activities
federal taxation
fair market value (FMV), income tax

Theophilos v. Commissioner
85 F.3d 440, 1996 U.S. App. LEXIS 12549
May 31, 1996
Federal Court
9th Circuit
United States Court of Appeals


This case involves a claim by the Commissioner that taxpayer is liable for income tax on the difference between the price paid for stock and its fair market value under § 83(a) of the Internal Revenue Code.

See Also

Theophilos v. Commissioner

Issue was whether the property received by the taxpayer was stock aquired in a closely held company or the contract to acquire the stock at a later time.