Cidale v. United States

EDITH H. JONES, Chief Judge:

Ricardo and Leslie Cidale appeal the district court’s grant of summary judgment to the United States on their claim to recover income taxes erroneously assessed. The issue in this appeal is whether a taxable transfer occurred on the date the taxpayers’ non-statutory employee stock options were exercised, when they financed the purchase with margin debt, or on the date the shares were sold. Relying on the district court’s analysis and a growing body of caselaw, we hold that the exercise date is controlling and thus AFFIRM.

I. BACKGROUND

On January 31, 2000, Cidale…