-3- between the 2001 regular tax capital gain and 2001 alternative minimum tax (AMT) capital loss that were attributable to the sale of stock purchased through the exercise of an incentive stock option within the meaning of section 422(b) (ISO).2 We hold that petitioners’ 2001 AMTI is calculated by adjusting their 2001 taxable income by the difference between the regular tax capital loss included in the computation of their 2001 taxable income and the $3,000 AMT capital loss that is allowed for 2001 under section 1211(b). Background All facts were stipulated or contained in the exhibits submitted therewith. We find the facts accordingly. Petitioners are husband and wife, and they filed a joint 2001 Form 1040, U.S. Individual Income Tax Return (2001 return). They resided in Hauppauge, New York, when their petition was filed. During 2000 and 2001, Jonathan N. Palahnuk (petitioner) was employed by Metromedia Fiber Network, Inc. (Metromedia). On February 23, 1998, he and Metromedia entered into an agreement (petitioner’s ISO) that allowed him to purchase shares of Metromedia class A common stock at a set price. Petitioner’s ISO qualified as an ISO under section 422(b). 2 We consider petitioners to have conceded any allegation of error asserted in their petition that they did not adequately pursue in their posttrial brief. See Harbor Cove Marina Partners Pship. v. Commissioner, 123 T.C. 64, 66 (2004); Davis v. Commissioner, 119 T.C. 1 n.1 (2002).Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011