Merlo v. Comm'r
United States Tax Court
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 market value of the shares of E…
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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 market value of the shares of E stock on Apr. 15, 2001. In 2001, E filed for bankruptcy, and P's shares of E stock became worthless. Under I.R.C. sec.…
1Opinion of the Court
OPINION
Haines, Judge:
Respondent determined deficiencies in petitioner’s Federal income taxes of $4,833 and $169,510 for the years 1999 and 2000, respectively. After concessions,1 the issues for decision are: (1) Whether the capital loss limitations of sections 1211 and 1212 apply to the calculation of alternative minimum taxable income (AMTl); and (2) whether petitioner may use capital losses realized in 2001 to reduce his AMTl in 2000.2
Background
The parties submitted this case fully stipulated pursuant to Rule 122. The stipulation of facts and the attached exhibits are incorporated herein by…
2Cases cited12 opinions
- Huntsberry v. CommissionerUnited States Tax Court · 1984
- Allen v. Comm'rUnited States Tax Court · 2002
- Alexander v. Internal Revenue Service of the United StatesCourt of Appeals for the First Circuit · 1995
- Speltz v. Comm'rUnited States Tax Court · 2005
- Eldon R. Kenseth and Susan M. Kenseth v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 2001
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3Cited by28 opinions
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- Kadillak v. Comm'rUnited States Tax Court · 2006
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