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> If that were the case, you could simply exercise at the point when the stock was liquid and you would never have to pay tax before then. Unless the AMT kicks
by ScottBurson 11y ago
> If that were the case, you could simply exercise at the point when the stock was liquid and you would never have to pay tax before then.
Unless the AMT kicks in. Anyone with options needs to keep an eye on this. Consult a tax professional if unsure.
- loumf 11y agoYou do not have to pay AMT before exercise. The AMT income is on the difference between FMV and exercise cost. There are risks if you don't immediately liquidate enough to cover your tax bill.