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August, 2001  Hot Topics

Part 1 of a 2-part series

Hot Topics: ISO's Meet the AMT, Part 1

The following article was written for Tax Notes and deals with employees who exercised Incentive Stock Options early in tax year 2000 and held the stock received (through the exercise of those options) beyond December 31, 2000.  Those employees are subject to the Alternative Minimum Tax (AMT) based on the value of their stock on the date of exercise, even though the subsequent crash of the NASDAQ has greatly diminished the stock values by as much as 90%.  Thus, many employees owe more in taxes than their stock is worth; indeed, some employees owe more than their entire net worth.

This two-part series is in Adobe *pdf format:  ISO's Meet the AMT.

 

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All contents copyright © 2007 Robert L. Sommers, attorney-at-law. All rights reserved. This internet site provides information of a general nature for educational purposes only and is not intended to be legal or tax advice. This information has not been updated to reflect subsequent changes in the law, if any. Your particular facts and circumstances, and changes in the law, must be considered when applying U.S. tax law. You should always consult with a competent tax professional licensed in your state with respect to your particular situation. The Tax Prophet(TM) is a trademark of Robert L. Sommers.