ISO & AMT & Tax Withholding
Person has $100K worth of gain in an ISO exercise (exercise and hold) this year. The $100K will be an AMT preference item. Is the client not penalized for paying estimated taxes on that $100K assuming he ends up with a large tax bill?
Permalink Submitted by Alan - IRA critic on Fri, 2014-12-05 20:30
I am not aware of any exemption from underpayment penalties due to AMT related taxes. The general rules regarding safe harbor estimated or withheld amounts should apply with or without AMT items.