Evan and Carol Marcus - Page 1
129 T.C. No. 4
UNITED STATES TAX COURT
EVAN AND CAROL MARCUS, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 10679-05. Filed August 15, 2007.
In a series of transactions between 1998 and
2000, P exercised incentive stock options (ISOs),
acquiring 40,362 shares of V stock. In 2001, Ps sold
30,297 V shares for $1,688,875. Ps had a regular tax
basis in these shares equal to the exercise price,
$127,920. Ps had an adjusted alternative minimum tax
(AMT) basis in these shares equal to the exercise
price increased by the amount included in alternative
minimum taxable income (AMTI) by reason of the
exercise of the ISOs, $4,472,288.
Ps argue that the difference between the adjusted
AMT basis and the regular tax basis of the V shares
sold is an adjustment under sec. 56(b)(3), I.R.C., and
therefore creates an alternative tax net operating
loss (ATNOL) under sec. 56(d), I.R.C. Ps argue that
the ATNOL may be carried back to reduce their AMTI in
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Last modified: November 10, 2007