Tax Court Denies AMT NOL for ISOs

In a reviewed opinion, the Tax Court yesterday unanimously held that the difference between the adjusted AMT basis and the regular tax basis of stock received through the exercise of an incentive stock option is not a tax adjustment to be taken into account in the calculation of the alternative tax net operating loss in the year the stock is sold. Marcus v. Commissioner, 129 T.C. No. 4 (8/15/07).

About the Author

Paul Caron

Paul Caron was named Duane and Kelly Roberts Dean of Pepperdine University School of Law on June 1, 2017. Dean Caron joined the Pepperdine faculty in 2013 after serving as the Dorothy and Leonard Straus Distinguished Visiting Professor of Law in the spring semesters of 2010 through 2013. He served as Associate Dean for Research and Faculty Development at Pepperdine in 2015-2017. Before coming to Pepperdine, he was Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law.

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