AMT on stock options

Submitted by Jamie Halverson on Thu, 2009-10-22 20:46

Good afternoon all,

I am looking for input on AMT when a client elects to act on company stock options. Does AMT apply? If so, what areas must we consider when working with the client on how to best take advantage of the options?

Thanks,

Jamie



Submitted by mk foss on Fri, 2009-10-23 01:24

You should be consulting a forum discussing income taxes rather than IRAs. The “spread” between the market value and the option strike price for incentive stock options is a preference for AMT purposes. There are planning techniquest to minimize or eliminate the AMT bite but they are beyond the scope of what we’re trying to accomplish on this forum.

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