AMT changes under new Tax Act impact ISO taxation
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See http://bit.ly/WNZwJY Anyone stuck paying the AMT or exercising incentive stock options will find these three major changes of interest.
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Bruce, thank you for this latest information and keeping us in the know.
Alma.
You're welcome. Glad you find it useful. Do you think these changes in the AMT could impact your company's use of ISOs?
AMT has always been the elephant in the corner that not many want to be subject to because of the complexity, although still complex the phase out and defined rate limits may give a bit clearer picture to promote participants to exercise and hold.
Our company stopped issuing options years ago but our long term participants usually wait until forfeiture nears before exercising and immediately selling, thereby waiving any potential preferrential tax treatment and avoiding AMT. Perhaps with these changes more will be willing to exercise and hold.