Evan and Carol Marcus v. Commissioner

129 T.C. No. 4

UNITED STATES TAX COURT EVAN AND CAROL MARCUS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 10679-05. Filed August 15, 2007. In a series of transactions between 1998 and 2000, P exercised incentive stock options (ISOs), acquiring 40,362 shares of V stock. In 2001, Ps sold 30,297 V shares for $1,688,875. Ps had a regular tax basis in these shares equal to the exercise price, $127,920. Ps had an adjusted alternative minimum tax (AMT) basis in these shares equal to the exercise price increased by the amount included in alternative minimum taxable income…