- 5 - the Exodus shares on the date of exercise, December 21, 2000, petitioner used the fair market value of the Exodus shares on April 15, 2001, to calculate the excess AMTI.3 Petitioner reported AMTI of $1,001,776 and tentative minimum tax (TMT) of $251,428. By subtracting his regular tax from the TMT, petitioner calculated an AMT of $116,973. Petitioner did not report an alternative tax net operating loss (ATNOL or AMT NOL) deduction on Form 6251. On November 13, 2003, respondent sent a notice of deficiency to petitioner. Respondent determined that petitioner was required to use the fair market value of the Exodus shares on the date of exercise (December 21, 2000) instead of their value on the date reported by petitioner (April 15, 2001) to calculate his AMTI. As a result, respondent increased petitioner’s AMTI from $1,001,776 to $1,607,166, his AMT from $116,973 to $286,483, and his total tax from $251,428 to $420,938.4 Accordingly, 3 Petitioner used the Apr. 15, 2001, fair market value on the basis of proposed legislation that would have allowed taxpayers to use the fair market value of shares on Apr. 15, 2001, instead of the fair market value on the date of exercise, in calculating the spread between exercise price and fair market value. See H.R. 2794, 107th Cong., 1st Sess. (2001). The proposed legislation was never enacted. 4 There is a slight discrepancy between the fair market value of the Exodus shares as reported by respondent in the notice of deficiency ($23.25 per share) and as stipulated by the parties ($23.3125 per share). As a result, respondent’s calculations in the notice of deficiency are inconsistent with the facts as stipulated. For purposes of consistency, we (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
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