Kadillak
Kadillak v. Commissioner of Internal Revenue
Opinion
Opinion
Brunetti, J.
Taxpayer Anthony Kadillak appeals a tax court decision upholding the Commissioner of Internal Revenue’s determinations of his income tax liabilities for tax years 2000 and 2001. The case concerns Kadillak’s acquisition, and later forfeiture and sale, of vested and nonvested shares of stock through the exercise of incentive stock options (“ISOs”), and the tax consequences of those transactions, especially for purposes of the Alternative Minimum Tax (“AMT”). In denying Kadillak’s petition for review, the tax court determined that Kadillak’s election under I.R.C. § 83(b) to recognize AMT income on his nonvested shares in 2000 was valid; Kadil-lak was therefore not entitled to a claim of right deduction under I.R.C. § 1341 when his nonvested shares were later forfeited to his employer upon his termination; and because the sale of his remaining shares in 2002 did not result in any alternative tax net operating loss (“ATNOL”) under I.R.C. § 56(d)(2)(A)®, Kadillak could not claim an ATNOL carryback deduction to reduce his AMT income for 2000. We have jurisdiction under I.R.C. § 7482(a)(1) and affirm.