norcalea Posted March 21, 2014 Report Share Posted March 21, 2014 Thank you in advance to anyone who can weigh in on this one. Client had ISO's that were exercised right before the acquisition/merger in 2009 of this company. He received a large payment for his shares which were accounted for on the 2009 return, less his cost basis. Considered Disqualifying Disposition. Nothing on the 2009 AMT page. Now in 2013 he received an additional "PMA Milestone achievement " payment for the same shares. Payment has its own 1099B. Are there any circumstances where this wouldn't be ordinary income but long term gain? Lisa Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted March 21, 2014 Report Share Posted March 21, 2014 I would show it as a LTCG sale with zero basis and acq date matching date of the stock purchase. That's when he acquired the right to the undetermined possible future "PMA Milestone achievement " payment, after all. Quote Link to comment Share on other sites More sharing options...
norcalea Posted March 21, 2014 Author Report Share Posted March 21, 2014 Thank you for taking the time to give an opinion. It really helps. 1 Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.