The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/question-on-amt-gifts-and-basis-11856798.aspx

Subject:  question on amt, gifts, and basis Date:  1/23/2000  12:17 PM
Author:  weberh Number:  25803 of 123001


Here is my situtation:

In August 1999 my brother-in-law worked at an internet darling and had incentive stock options with a cost to him of $0.01/share. He exercised them (paid 0.01/sh and obtained the shares) before the ipo but just after another company bought a piece of his company for $12/share. This exercise triggered the AMT for him, and he had to pay a significant additional tax on the (12-0.01)/share.

In September 1999, he gifted me 500 shares which he had obtained through the exercise of his iso. That same week, another company bought a piece of his company for $15/share.

His claim was that my basis was $15/share -- I think he was confused about he difference betwee