Alternative Minimum Tax

8 Things to Know About AMT Credit and Incentive Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 26, 2025 | Alternative Minimum Tax

Incentive stock options (ISO) and the alternative minimum tax (AMT) go hand in hand (here’s an in-depth guide on their correlation if you’re unfamiliar). If you exercise and hold ISOs in...

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What You Should Know About the Alternative Minimum Tax and Incentive Stock Options

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Alternative Minimum Tax

Most people understand that taxes can be a little more complicated when you have incentives stock options and other equity compensation. What they may not know is that income tax...

How to Use a Cashless Exercise of Incentive Stock Options to Manage Cash Flow

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Alternative Minimum Tax, Incentive Stock Options

If you have employee stock options, you need to determine what kind you have so you know if a cash or cashless exercise makes sense: incentive stock options (ISO) or...

What You Should Know About the Alternative Minimum Tax

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Alternative Minimum Tax

Created in 1969 as a way to ensure high-income earners paid their fair share in taxes, the alternative minimum tax (AMT) acts as a parallel tax system to the regular...

Why Waiting to Exercise Your Incentive Stock Options May Increase The Alternative Minimum Tax

by Daniel Zajac, CFP®, EA | Last updated May 27, 2025 | Alternative Minimum Tax, Incentive Stock Options

Incentive stock options are unique in that the longer you wait to exercise, the costlier it may be to exercise and hold your shares. That’s not because exercising the incentive...

How to Exercise Incentive Stock Options to the AMT Crossover Point

by Daniel Zajac, CFP®, EA | Last updated May 19, 2025 | Alternative Minimum Tax, Incentive Stock Options, Strategies for Maximizing Equity Compensation

Finding the best time and best strategy to exercise incentive stock options is difficult. Competing considerations on income tax, investment planning, and financial planning make it difficult to address the...

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