Robert J. Merlo v. Commissioner

126 T.C. No. 10

UNITED STATES TAX COURT ROBERT J. MERLO, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 21538-03. Filed April 25, 2006. P exercised incentive stock options on Dec. 21, 2000, acquiring 46,125 shares of E stock. As a result, under I.R.C. secs. 55(b)(2), 56(b)(3), and 83(a), P was required to include $1,066,064, the spread between the exercise price and the fair market value of the shares of E stock on the date of exercise, in his alternative minimum taxable income in 2000. Instead, P included only $452,025, the spread between the exercise price and the fair…