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 best time to exercise incentive stock options (ISOs) with a blanket answer. Some …
Alternative minimum tax
4 Ways to Lower Your Alternative Minimum Tax Liability with Incentive Stock Options
When you exercise and hold incentive stock options, it’s very possible that you will be subject to the alternative minimum tax (AMT). This part of the tax code gets complex, making it difficult to understand. One way to think of the AMT is a pre-payment of income tax on exercised incentive stock …
Incentive Stock Options and The Alternative Minimum Tax
If you have incentive stock options, you’ve likely heard the term alternative minimum tax, or AMT. But what is the AMT and how is it calculated? It’s a type of income tax, but very different than what you may be used to paying. Typically, the calculation of your income total tax due is subject …
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