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.