4 ms·

the incentive part of ISO is you don't pay regular tax - other stock options you do though. unless you're talking about an 83b election(early exercise), or dou

• PopAlongKid 4y ago
  >amt limits are rather low, they didn't adjust for inflation for a long time so its surprisingly easy to hit That is old information. Yes, for a number of years Congress had to temporarily extend the higher AMT exemption amounts, but they became permanently inflation-indexed beginning 2013. Also, we are in the middle of an eight-year temporary change (TCJA) that further increased AMT exemption amounts, so in fact no, it is no longer easy to hit. "The 2017 Tax Cuts and Jobs Act (TCJA), included provisions that significantly reduced the impact of the AMT. The TCJA enacted a higher AMT exemption and a large increase in the income at which the exemption begins to phase out. It also repealed or scaled back some of the largest AMT preference items—personal exemptions, the state and local tax deduction, and miscellaneous deductions subject to the 2 percent of adjusted gross income floor—further limiting the AMT’s scope. As a result, TPC estimates that the number of AMT taxpayers fell to just 200,000 in 2018 and will remain roughly constant through 2025."[0] [0]https://www.taxpolicycenter.org/briefing-book/what-amt https://www.taxpolicycenter.org/briefing-book/what-amt