4 ms·

So, you all should check with your own tax advisors, but it's my understanding that the AMT problem for incentive stock options has actually been fixed. But ye

So, you all should check with your own tax advisors, but it's my understanding that the AMT problem for incentive stock options has actually been fixed. But yes, this was a HUGE problem in the last boom. I have a few friends who got majorly screwed by it.

strlen 15y ago
No, it has not been fixed. However, there are a few things you can do. PREFACE Check with a CPA before acting on this advice! I'm not a CPA. * If you sell in the same calendar year as you exercise, it's considered a "disqualifying disposition" * The tax is actually Max(regular income tax, AMT). Normally your AMT (on your regular income) is lower. So you can exercise and hold just enough shares to "bridge you" to the point where the AMT is equal to the regular income tax. This way you will still be eligible for long term capital gains tax. REMINDER Check with a CPA before acting on this advice!