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 …
AMT
Incentive Stock Options and The Alternative Minimum Tax
The alternative minimum tax is a supplemental tax that may be due, in addition to regular income tax, for calendar years during which a taxpayer has a special circumstance that causes the tax to be due. The exercise of incentive stock options is one of these special circumstances that often leads to …
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