Nield and Linda Montgomery - Page 10

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          3     3/14/01       4,740         18,297          (7,036)                   
          4     3/14/01         250            963             (52)                   
          4     3/15/01       4,750         18,215          (1,070)                   
          4     3/15/01         998          3,827            (225)                   
          4     3/15/01       4,002         15,346            (902)                   
          5     3/14/01         250            963             (52)                   
          5     3/16/01      10,000         39,496          (1,104)                   
          5     3/19/01       5,000         19,278          (1,022)                   
          5     3/20/01       7,500         27,275          (2,160)                   
               Petitioners have never been in the trade or business of                
          trading stocks.  Petitioners held their MGC shares for investment           
          purposes and not as traders or dealers.                                     
               MGC never requested that petitioner disgorge any profits               
          from his sales of MGC shares, petitioner was never sued by MGC or           
          one of its shareholders pursuant to section 16(b) of the Exchange           
          Act, and petitioner never paid over to MGC any part of the                  
          proceeds from his sales of MGC common stock.                                
               E.  Petitioners’ Tax Return and Amended Return                         
               On or about October 18, 2001, petitioners filed a joint                
          Federal income tax return for the taxable year 2000 reporting               
          total tax of $2,831,360 (including AMT described below).                    
          Petitioners reported total payments of $2,636,723, leaving a                
          balance due of $196,006 (including an estimated tax penalty of              
          $1,369).  Petitioners submitted Form 6251, Alternative Minimum              
          Tax--Individuals, with their tax return for 2000.  On Form 6251,            
          line 10, petitioners reported $3,988,180 of alternative minimum             
          tax income (arising from the exercise of petitioner’s ISOs) in              
          excess of regular taxable income, a total of $10,665,935 of                 






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