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You're talking about AMT, right? You're right, there are situations when people can't exercise their options simply because of the high tax bill. In this part
by stockoptionsta 10y ago
You're talking about AMT, right?
You're right, there are situations when people can't exercise their options simply because of the high tax bill.
In this particular case, with the company I'm talking about I am fairly certain (simply because I'm doing the same calculations for myself) that if he exercised his options it would not trigger AMT.
- hesdeadjim 10y agoOnly ISO options trigger AMT. NQSO triggers regular income tax on exercise for spread between strike price and FMV. As far as I'm aware almost option grants are NQSO because ISOs have a bunch of other limitations that make them annoying or untenable depending on the grant size.