W.E.B. Bantling and Michael Beriss
UPDATED FOR 2009! Learn about year-end planning specifically for incentive stock options, including ideas related to the alternative minimum tax.
Kaye A. Thomas
UPDATED FOR REVISED TAX LAW! Special rules for old unused AMT credit, first available in 2007, are drastically revised for tax years 2008 (returns filed in 2009) through 2012. This is the first of two articles on the refundable AMT credit, which provides a way for many people to use more AMT credit than under the regular rules.
Stanley Trotta with Robert Gordon
President Obama's proposals will probably raise taxes after 2010. Should you take action with stock options ow or wait until new rates apply? Part 3 looks at incentive stock options.
Kaye A. Thomas
UPDATED FOR REVISED TAX LAW! Special rules for old unused AMT credit, first available in 2007, are drastically revised for 2008. This is the second of two articles on the refundable AMT credit, which provides a way for many people to use more AMT credit than under the regular rules.
Tom Davison and Liam Hurley
Right after you have completed your taxes is a great time to do your big-picture financial planning. You can more accurately project your income and likely tax situation for the remainder of this year and the next, including AMT risk and capital-loss carry-forwards, to develop your strategy. At the end of the year, review your analysis and strategy again.
Alan Ungar
The tax reductions of the past few years have brought both good and bad news for holders of incentive stock options (ISOs). While you may have lower capital gains rates when you hold the shares long enough after exercise, it's harder to avoid the risks of the alternative minimum tax (AMT) and to fully recoup any AMT credit.
The myStockOptions.com Tax Team
UPDATED FOR 2009! Learn how to report your sales of company stock on Schedule D of IRS Form 1040. Our comprehensive guide to Schedule D reporting covers sales of stock from nonqualified stock options, incentive stock options, restricted stock, restricted stock units, performance shares, employee stock purchase plans, and stock appreciation rights.
Bruce Brumberg and Lynnette Khalfani
Tax returns can be onerous. Read this article if you are puzzled by Form 1099-B or don't know how and where to report sales of company stock from options or employee stock purchase plans.
Marilyn Renninger
You're ready to delve deeper into how and when different taxes apply to ISOs, including the AMT. You need to consider taxes at exercise and at sale to put together a strategy that maximizes the value of your options.
Kaye Thomas
A trap awaits those who, after selling shares from exercised ISOs to avoid AMT, want to buy back the stock.
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This depends on how long ago you exercised the ISOs that triggered the alternative minimum tax. The 2008 version of the new AMT credit law, discussed below, is most favorable for you. First, however, some background on the law may be helpful...
The alternative minimum tax (AMT) was intended to require the super-wealthy to pay tax when credits and other deductions would let them circumvent the regular tax system. However, over the years the AMT has begun to hit a growing number of taxpayers who aren't wealthy, including people who exercise incentive stock options. Congress has enacted temporary AMT relief for them, and has changed the rules for the use of AMT credits. This FAQ follows the latest developments...
Experts suggest several strategies for you to consider when you exercise ISOs and are concerned about triggering the alternative minimum tax. For example, near year-end or at the beginning of the year, you can...
The AMT rules and forms baffle even tax professionals. You can better understand the process by...
The taxation of incentive stock options (ISOs) is complex. The tax impact depends on when you sell or transfer the stock received at exercise. If you make what is called a disqualifying disposition (e.g., an early sale or a gift) of ISO shares, ordinary compensation income and any capital gains/losses will be determined by your...
While the 2003 tax law did not change the taxation of ISOs, there were a few changes that impact the tax when you sell the stock. Tax law changes in 2006, 2007, 2008, and 2009 raised the AMT income exemption amounts and provided an alternative way to use AMT credits...
"Capital gain" is income that arises from the sale of a capital asset. Gain from the sale of securities held for investment...
One strategy for minimizing AMT is to spread out the exercise of ISOs over...
The AMT system is complicated. Broadly, it starts by taking your adjusted gross income, subtracts your itemized deductions, makes certain negative and positive adjustments, and includes certain tax items called tax "preferences." The resulting amount...
The holding period to determine whether a capital gain is long-term or short-term starts on the...
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