- 3 -
petitioner may use capital losses realized in 2001 to reduce his
AMTI 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 this reference. At the time the petition
was filed, petitioner resided in Dallas, Texas.
During 1999 and 2000, petitioner was employed by Service
Metrics, Inc. (SMI). On July 2, 1999, petitioner was named vice
president of marketing for SMI. On July 14, 1999, petitioner and
SMI entered into a stock option agreement (SMI stock option
agreement) in which SMI granted petitioner options to purchase
275,000 shares of SMI common stock with an exercise price of 10
cents per share. The stock options granted to petitioner
qualified as incentive stock options (ISOs) under section 422.
On November 19, 1999, petitioner entered into an employment
agreement with Exodus Communications, Inc. (Exodus). On November
23, 1999, Exodus acquired SMI. As a result, Exodus converted
petitioner’s options to purchase shares of SMI common stock to
options to purchase shares of Exodus common stock.
2 Unless otherwise indicated, all section references are to
the Internal Revenue Code, as amended, and all Rule references
are to the Tax Court Rules of Practice and Procedure. Amounts
are rounded to the nearest dollar.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011