Category:
Alternative Minimum Tax
The Alternative Minimum Tax can be a significant concern when exercising incentive stock options, particularly if you have large bargain element, and it’s important to understand how this might impact your overall strategy.
A large bargain element might lead to a big AMT, and you’ll want to consider how you will cover this tax. You’ll also want to evaluate how and when you receive an AMT credit, as well as your concentration risk, and the potential stock performance.
Ultimately, every financial and tax situation is different. Ideally, you’ll want to run tax calculation or speak directly with an advisor before making a final decision on how best to manage your AMT concerns this year. Learn more