John is a consultant who issues an invoice December 18th. The company he works for always pays within ten days, including the time for the check to be mailed. If John checks his mailbox on January 1st and the check is there, which of the following tax rules would cause it to be taxable in the prior year?
Substantial risk of forfeiture
Tax triads
Constructive receipt
Economic benefit doctrine
On January 15, Year 1, Blake, a Senior Vice President for Acme Corporation, is granted 20,000 ISOs at an exercise price of $10. On Fedruary 6, Year 2, he exercises all his options when the price of Acme stock is $27. He sells the ISO shares three years later, when Acme stock is trading at $47 per share. What is his long-term capital gain per share?
$47
$37
$27
$20
Blake was awarded 1,000 shares of restricted stock of Acme Corporation at a time when the stock price was $7. Assume Blake properly makes an 83(b) election at the date of the award. The stock vests 3 years later at a price of $19 and Blake sells it then. What are Blake’s tax consequences in the year he sells the stock?
Sample Solution
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