- 2 - because the sec. 83(b), I.R.C., election was invalid. P also claimed that the capital loss limitations of secs. 1211 and 1212, I.R.C., do not apply for purposes of the AMT so that he may use his capital losses realized in 2002 to reduce his alternative minimum taxable income (AMTI) in 2000. R rejected P’s amended returns and issued to P a notice of Federal tax lien and notice of intent to levy. After a sec. 6330, I.R.C., hearing, the Appeals Office rejected P’s arguments, and P timely petitioned this Court for review of R’s lien and levy. Held: P’s sec. 83(b), I.R.C., election required him to recognize as AMTI the excess of his vested and nonvested stock’s fair market value (FMV) over its exercise price on the date of exercise. Held, further: P acquired beneficial ownership of the nonvested stock when he exercised his ISOs; thus, the nonvested shares were transferred to P within the meaning of sec. 1.83- 3(a)(1), Income Tax Regs. Held, further: P was not required to return the nonvested stock upon the happening of an event that was certain to occur pursuant to sec. 1.83-3(a)(3), Income Tax Regs.; thus, the nonvested shares were properly transferred to P within the meaning of sec. 1.83-3(a)(1), Income Tax Regs. Held, further: P is not entitled to a deduction under sec. 1341(a), I.R.C. Held, further: The capital loss limitations of secs. 1211 and 1212, I.R.C., apply for purposes of calculating alternative minimum taxable income. Held, further: P may not carry back alternative minimum tax net operating losses to reduce his AMTI in 2000. Don Paul Badgley, Duncan C. Turner, and Brian G. Isaacson, for petitioner. Kirk M. Paxson, Julie L. Payne, and William C. Schmidt, for respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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