G.M. Trading Corporation - Page 10

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          value the services at less than the employer’s cost.  The                   
          taxpayer speculated that he personally could have paid less to              
          move himself than his employer had paid, that the services                  
          received were therefore worth less to him, and that he should not           
          have to report the services at their recognized value.  The court           
          rejected this argument because the taxpayer "had no obligation to           
          accept these [moving] services, * * * [he] did accept them, this            
          being a part of the bargain with * * * [his employer], and * * *            
          the services were in fact rendered and were paid for [by his                
          employer] at the fair market value.”  Id. at 545.                           
               A superficial reading of Landau v. Commissioner, 7 T.C. 12             
          (1946), may appear to support petitioner’s position.  Therein,              
          however, South African pounds1 received as a gift were subject to           
          preexisting limitations on their removal from South Africa.  The            
          taxpayer had no control over these restrictions.  The                       
          restrictions were not the product of negotiations and bargaining            
          by the parties, and the Court found that the fair market value of           
          the South African pounds received as a gift should be discounted            
          to reflect the preexisting restrictions.                                    
               The present case is somewhat analogous to cases involving              
          the valuation of stock includable in a gross estate where the               
          stock, on the date of decedent's death, is subject to a                     
          restrictive stock purchase agreement at a specified price.                  
          Typically, in such cases, the taxpayers argue (in light of the              
          preexisting restrictions that are applicable to the stock) for a            


               South African currency is now measured in rands.                       



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