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If you have cheap options you can try to exercise them early (before the delta is big) and/or in small chunks over time so you don’t get hit with the AMT.
by skrtskrt 5y ago
If you have cheap options you can try to exercise them early (before the delta is big) and/or in small chunks over time so you don’t get hit with the AMT.
- lavezza 5y agoTrue, but you also have to wait for your options to vest. I did make the mistake of waiting too long. With a 5-year vesting schedule it's possible to still get a stiff tax for the last few years. This is one area where I think the company didn't make the consequences clear. But I also understand that they were trying very hard to not appear to be giving tax advice. Also, my company specifically asked us NOT to do small purchases. I guess there were people doing monthly exercises with each paycheck and the company didn't like that (it wasn't forbidden, just frowned upon).