AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
ISO for private company
Posted by: lanxiaoshan86, April 1, 2016 04:27PM
Hello,

I work for a private company and exercised ISO in Nov 2015 and I am still holding all the stocks. For tax purpose, do I have to report the spread on my AMT if my company is private? the AMT significantly increased by tax liability.....

Thank you!

Re: ISO for private company
Posted by: MaryL2016, April 1, 2016 06:25PM
Hi,

Yes you would have to factor this exercise in your AMT. Your company should have filed a 3921 to report the exercise to the IRS. If not, I would recommend you confirm the 409a valuation at the time of exercise to ensure you have all accurate details.

Re: ISO for private company
Posted by: Art, April 2, 2016 01:32AM
If ISO exercise places you in AMT territory, file the AMT credit form (8801 ?) and continue to file it while unused credit remains.

Re: ISO for private company
Posted by: lanxiaoshan86, April 2, 2016 01:46AM
Thank you so much!

Re: ISO for private company
Posted by: lanxiaoshan86, April 2, 2016 01:50AM
Hello Art,

But I don't have to file 8801 until preparing 2016 tax as the amt was triggered by 2015 ISO exercise?

Thanks!

Re: ISO for private company
Posted by: Art, April 2, 2016 01:51AM
Right.



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