Tax Consequences When Exercising Stock Options

the addition of taxes makes the entire investment more burdensome as well as risky
The Alternative Minimum Tax (AMT) can apply to current and former employees of privately held companies when they exercise their incentive stock options (ISOs) if the fair market value is higher than the exercise price. The AMT can have a significant cash impact on those who exercise their ISOs.

Scott ChouSeptember 15th, 2014 News

No Comments.

img.wp-smiley,img.emoji{display:inline !important;border:none !important;box-shadow:none !important;height:1em !important;width:1em !important;margin:0 .07em !important;vertical-align:-.1em !important;background:none !important;padding:0 !important;}.wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em;}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none;}:root{--wp--preset--aspect-ratio--square:1;--wp--preset--aspect-ratio--4-3:4/3;--wp--preset--aspect-ratio--3-4:3/4;--wp--preset--aspect-ratio--3-2:3/2;--wp--preset--aspect-ratio--2-3:2/3;--wp--preset--aspect-ratio--16-9:16/9;--wp--preset--aspect-ratio--9-16:9/16;--wp--preset--color--black:#000;--wp--preset--color--cyan-bluish-gray:#abb8c3;--wp--preset--color--white:#fff;--wp--preset--color--pale-pink:#f78da7;--wp--preset--color--vivid-red:#cf2e2e;--wp--preset--color--luminous-vivid-orange:#ff6900;--wp--preset--color--luminous-vivid-amber:#fcb900;--wp--preset--color--light-green-cyan:#7bdcb5;--wp--preset--color--vivid-green-cyan:#00d084;--wp--preset--color--pale-cyan-blue:#8ed1fc;--wp--preset--color--vivid-cyan-blue:#0693e3;--wp--preset--color--vivid-purple:#9b51e0;--wp--preset--gradient--vivid-cyan-blue-to-vivid-purple:linear-gradient(135deg,rgba(6,147,227,1) 0%,#9b51e0 100%);--wp--preset--gradient--light-green-cyan-to-vivid-green-cyan:linear-gradient(135deg,#7adcb4 0%,#00d082 100%);--wp--preset--gradient--luminous-vivid-amber-to-luminous-vivid-orange:linear-gradient(135deg,rgba(252,185,0,1) 0%,rgba(255,105,0,1) 100%);--wp--preset--gradient--luminous-vivid-orange-to-vivid-red:linear-gradient(135deg,rgba(255,105,0,1) 0%,#cf2e2e 100%);--wp--preset--gradient--very-light-gray-to-cyan-bluish-gray:linear-gradient(135deg,#eee 0%,#a9b8c3 100%);--wp--preset--gradient--cool-to-warm-spectrum:linear-gradient(135deg,#4aeadc 0%,#9778d1 20%,#cf2aba 40%,#ee2c82 60%,#fb6962 80%,#fef84c 100%);--wp--preset--gradient--blush-light-purple:linear-gradient(135deg,#ffceec 0%,#9896f0 100%);--wp--preset--gradient--blush-bordeaux:linear-gradient(135deg,#fecda5 0%,#fe2d2d 50%,#6b003e 100%);--wp--preset--gradient--luminous-dusk:linear-gradient(135deg,#ffcb70 0%,#c751c0 50%,#4158d0 100%);--wp--preset--gradient--pale-ocean:linear-gradient(135deg,#fff5cb 0%,#b6e3d4 50%,#33a7b5 100%);--wp--preset--gradient--electric-grass:linear-gradient(135deg,#caf880 0%,#71ce7e 100%);--wp--preset--gradient--midnight:linear-gradient(135deg,#020381 0%,#2874fc 100%);--wp--preset--font-size--small:13px;--wp--preset--font-size--medium:20px;--wp--preset--font-size--large:36px;--wp--preset--font-size--x-large:42px;--wp--preset--spacing--20:.44rem;--wp--preset--spacing--30:.67rem;--wp--preset--spacing--40:1rem;--wp--preset--spacing--50:1.5rem;--wp--preset--spacing--60:2.25rem;--wp--preset--spacing--70:3.38rem;--wp--preset--spacing--80:5.06rem;--wp--preset--shadow--natural:6px 6px 9px rgba(0,0,0,.2);--wp--preset--shadow--deep:12px 12px 50px rgba(0,0,0,.4);--wp--preset--shadow--sharp:6px 6px 0px rgba(0,0,0,.2);--wp--preset--shadow--outlined:6px 6px 0px -3px rgba(255,255,255,1),6px 6px rgba(0,0,0,1);--wp--preset--shadow--crisp:6px 6px 0px rgba(0,0,0,1);}:where(.is-layout-flex){gap:.5em;}:where(.is-layout-grid){gap:.5em;}body .is-layout-flex{display:flex;}.is-layout-flex{flex-wrap:wrap;align-items:center;}.is-layout-flex > :is(*,div){margin:0;}body .is-layout-grid{display:grid;}.is-layout-grid > :is(*,div){margin:0;}:where(.wp-block-columns.is-layout-flex){gap:2em;}:where(.wp-block-columns.is-layout-grid){gap:2em;}:where(.wp-block-post-template.is-layout-flex){gap:1.25em;}:where(.wp-block-post-template.is-layout-grid){gap:1.25em;}.has-black-color{color:var(--wp--preset--color--black) !important;}.has-cyan-bluish-gray-color{color:var(--wp--preset--color--cyan-bluish-gray) !important;}.has-white-color{color:var(--wp--preset--color--white) !important;}.has-pale-pink-color{color:var(--wp--preset--color--pale-pink) !important;}.has-vivid-red-color{color:var(--wp--preset--color--vivid-red) !important;}.has-luminous-vivid-orange-color{color:var(--wp--preset--color--luminous-vivid-orange) !important;}.has-luminous-vivid-amber-color{color:var(--wp--preset--color--luminous-vivid-amber) !important;}.has-light-green-cyan-color{color:var(--wp--preset--color--light-green-cyan) !important;}.has-vivid-green-cyan-color{color:var(--wp--preset--color--vivid-green-cyan) !important;}.has-pale-cyan-blue-color{color:var(--wp--preset--color--pale-cyan-blue) !important;}.has-vivid-cyan-blue-color{color:var(--wp--preset--color--vivid-cyan-blue) !important;}.has-vivid-purple-color{color:var(--wp--preset--color--vivid-purple) !important;}.has-black-background-color{background-color:var(--wp--preset--color--black) !important;}.has-cyan-bluish-gray-background-color{background-color:var(--wp--preset--color--cyan-bluish-gray) !important;}.has-white-background-color{background-color:var(--wp--preset--color--white) !important;}.has-pale-pink-background-color{background-color:var(--wp--preset--color--pale-pink) !important;}.has-vivid-red-background-color{background-color:var(--wp--preset--color--vivid-red) !important;}.has-luminous-vivid-orange-background-color{background-color:var(--wp--preset--color--luminous-vivid-orange) !important;}.has-luminous-vivid-amber-background-color{background-color:var(--wp--preset--color--luminous-vivid-amber) !important;}.has-light-green-cyan-background-color{background-color:var(--wp--preset--color--light-green-cyan) !important;}.has-vivid-green-cyan-background-color{background-color:var(--wp--preset--color--vivid-green-cyan) !important;}.has-pale-cyan-blue-background-color{background-color:var(--wp--preset--color--pale-cyan-blue) !important;}.has-vivid-cyan-blue-background-color{background-color:var(--wp--preset--color--vivid-cyan-blue) !important;}.has-vivid-purple-background-color{background-color:var(--wp--preset--color--vivid-purple) !important;}.has-black-border-color{border-color:var(--wp--preset--color--black) !important;}.has-cyan-bluish-gray-border-color{border-color:var(--wp--preset--color--cyan-bluish-gray) !important;}.has-white-border-color{border-color:var(--wp--preset--color--white) !important;}.has-pale-pink-border-color{border-color:var(--wp--preset--color--pale-pink) !important;}.has-vivid-red-border-color{border-color:var(--wp--preset--color--vivid-red) !important;}.has-luminous-vivid-orange-border-color{border-color:var(--wp--preset--color--luminous-vivid-orange) !important;}.has-luminous-vivid-amber-border-color{border-color:var(--wp--preset--color--luminous-vivid-amber) !important;}.has-light-green-cyan-border-color{border-color:var(--wp--preset--color--light-green-cyan) !important;}.has-vivid-green-cyan-border-color{border-color:var(--wp--preset--color--vivid-green-cyan) !important;}.has-pale-cyan-blue-border-color{border-color:var(--wp--preset--color--pale-cyan-blue) !important;}.has-vivid-cyan-blue-border-color{border-color:var(--wp--preset--color--vivid-cyan-blue) !important;}.has-vivid-purple-border-color{border-color:var(--wp--preset--color--vivid-purple) !important;}.has-vivid-cyan-blue-to-vivid-purple-gradient-background{background:var(--wp--preset--gradient--vivid-cyan-blue-to-vivid-purple) !important;}.has-light-green-cyan-to-vivid-green-cyan-gradient-background{background:var(--wp--preset--gradient--light-green-cyan-to-vivid-green-cyan) !important;}.has-luminous-vivid-amber-to-luminous-vivid-orange-gradient-background{background:var(--wp--preset--gradient--luminous-vivid-amber-to-luminous-vivid-orange) !important;}.has-luminous-vivid-orange-to-vivid-red-gradient-background{background:var(--wp--preset--gradient--luminous-vivid-orange-to-vivid-red) !important;}.has-very-light-gray-to-cyan-bluish-gray-gradient-background{background:var(--wp--preset--gradient--very-light-gray-to-cyan-bluish-gray) !important;}.has-cool-to-warm-spectrum-gradient-background{background:var(--wp--preset--gradient--cool-to-warm-spectrum) !important;}.has-blush-light-purple-gradient-background{background:var(--wp--preset--gradient--blush-light-purple) !important;}.has-blush-bordeaux-gradient-background{background:var(--wp--preset--gradient--blush-bordeaux) !important;}.has-luminous-dusk-gradient-background{background:var(--wp--preset--gradient--luminous-dusk) !important;}.has-pale-ocean-gradient-background{background:var(--wp--preset--gradient--pale-ocean) !important;}.has-electric-grass-gradient-background{background:var(--wp--preset--gradient--electric-grass) !important;}.has-midnight-gradient-background{background:var(--wp--preset--gradient--midnight) !important;}.has-small-font-size{font-size:var(--wp--preset--font-size--small) !important;}.has-medium-font-size{font-size:var(--wp--preset--font-size--medium) !important;}.has-large-font-size{font-size:var(--wp--preset--font-size--large) !important;}.has-x-large-font-size{font-size:var(--wp--preset--font-size--x-large) !important;}:where(.wp-block-post-template.is-layout-flex){gap:1.25em;}:where(.wp-block-post-template.is-layout-grid){gap:1.25em;}:where(.wp-block-columns.is-layout-flex){gap:2em;}:where(.wp-block-columns.is-layout-grid){gap:2em;}:root :where(.wp-block-pullquote){font-size:1.5em;line-height:1.6;}.page-id-38 .hg-table-box h4::before,.page-id-38 .hg-table-box h4::after{height:0;}.socialwrap{text-align:center;margin-bottom:20px;}.socialwrap ul.social-icon2 li{padding:0px 10px;}.socialwrap ul.social-icon2 li a{background:#fff;height:42px;width:42px;display:inline-block;border-radius:50%;vertical-align:bottom;line-height:51px;text-align:center;}.socialwrap ul.social-icon2 li a i{font-size:24px;}.socialwrap ul.social-icon2 li a:hover{background:#ff7070;color:#fff;}.socialwrap ul.social-icon2 li a:hover i{color:#fff;}.gap_upper2{margin-top:20px;margin-bottom:15px;}.seo-automation-spacer{display:none !important;}.seo-footer-section{display:none !important;}footer .text_p3 p{font-size:24px;}.recent-posts-page-text ul li{margin-bottom:0;}.custom-post-class ul li{line-height:inherit;}.rp4wp-related-posts ul li{margin-bottom:10px;padding-bottom:10px;}.simplesocialbuttons.simplesocialbuttons_inline.simplesocial-sm-round button{}.rp4wp-related-posts ul{width:100%;padding:0;margin:0;float:left;}.rp4wp-related-posts ul>li{list-style:none;padding:0;margin:0;padding-bottom:20px;clear:both;}.rp4wp-related-posts ul>li>p{margin:0;padding:0;}.rp4wp-related-post-image{width:35%;padding-right:25px;-moz-box-sizing:border-box;-webkit-box-sizing:border-box;box-sizing:border-box;float:left;}.recentcomments a{display:inline !important;padding:0 !important;margin:0 !important;}sidebar-2 .col-md-4.email_form{margin-top:20px;}.epq-pull-quote-default{border-top:3px solid #9cadb7;margin-top:1.2%;margin-bottom:.8%;font-size:1.7em;line-height:1.2em;color:#9cadb7;padding:.3em 5px 5px;background:white;}span.dashicons.dashicons-twitter{width:20px;height:20px;font-size:20px;line-height:1.9;}.exerciseloan-page-text li{font-family:eight;color:#384554;font-size:19px;margin:0px;font-weight:300;}.col-md-6 h1{color:#1a4075 !important;font-weight:normal;font-size:32px;padding-bottom:15px;}.circular-portrait{display:block;position:relative;width:150px;height:150px;overflow:hidden;border-radius:50%;}.wpfront-message{font-size:15px;line-height:21px;font-family:Helvetica;padding-top:10px;padding-bottom:10px;}#wpfront-notification-bar div.wpfront-close{border:none !important;background-color:unset !important;font-size:12px;margin-top:15px;margin-right:25px;}a.wpfront-button{display:inline-block;padding:6px 10px;font-size:12px;border-radius:3px;color:#fff !important;outline:0;border:0;cursor:pointer;text-shadow:0 1px 1px rgba(0,0,0,.2);font-family:Helvetica;}.custom-sidebar aside#text-2{padding:20px 0px 0px 0px;}.custom-sidebar{padding:40px 0px 0px 0px;display:table;}.custom-sidebar .widget{margin-bottom:10px !important;}.custom-sidebar .eso-video-form-div{margin-top:0px;}.custom-sidebar h3.widget-title{line-height:32px !important;font-family:eight !important;color:#4a9b9b !important;font-size:26px !important;font-weight:300 !important;padding-left:15px;padding-top:20px;text-transform:capitalize !important;}.custom-sidebar.widget input,.custom-sidebar.widget textarea{background-color:transparent !important;}.custom-sidebar .widget input,.custom-sidebar .widget textarea{background-color:#fff !important;}.custom-sidebar input.wpcf7-form-control.wpcf7-submit.btn.btn-primary.eso-video-btn{background:#064079 !important;}.custom-sidebar .btn-group.btn-group-lg.eso-video-form-div-in.vido-bt{margin-top:10px;}.custom-post-class h3{font-family:eight !important;color:#7da3c7 !important;line-height:32px !important;font-size:25px !important;margin:20px 0 0 !important;font-weight:600 !important;}.custom-post-class img{width:100%;padding:40px 0px 0px 0px;}.rp4wp-related-posts{margin-top:20px;display:table;background:#f9f9f9 !important;padding:20px;}h3.comments-titlenum{padding:0px 10px;font-size:20px;}.post-zigzag-line{margin-bottom:0px !important;}h3.comment-reply-title{margin-bottom:7px !important;}h3.comments-titlenum{border-bottom:1px solid rgba(128,128,128,.28);}.post-navigation-next p a,.post-navigation-prev p a{font-weight:500;text-transform:capitalize;}section.post-author-comment-box .post-social-icon{margin-top:30px !important;}.mtsnb-button-type.mtsnb-content{text-align:left;}.newcls .comments-area{margin:auto !important;max-width:100%;padding:0 20px !important;background:#f9f9f9 !important;padding-top:15px !important;}.comment-form input#submit{font-weight:500 !important;}.rp4wp-related-posts ul{padding-top:20px;}.rp4wp-related-post-content a{font-size:20px;}.recent-posts-page-text p{padding-top:15px !important;}.rp4wp-related-posts ul li{border-bottom:1px solid rgba(128,128,128,.18);margin-bottom:10px;padding-bottom:20px;line-height:32px;padding-top:10px;}.post-author-box span em a{display:block;}.expiring-page{background:#075095;}.expiring-page h1{color:#fff;color:#fff;display:table-cell;vertical-align:middle;text-align:center;font-family:eight;font-size:80px;padding:30px 0px;}ul.expiring-stock-class{margin-top:15px;}.expiring-banner-image{margin-bottom:15px;}.recent-posts-page-text p{font-size:18px !important;}.expiring-page{background:url("https://cdn-ceeim.nitrocdn.com/TMwioygwoLoccegJInrjtDDKgKjNOgjH/assets/images/optimized/rev-af7e101/employeestockoptions.com/wp-content/uploads/2017/07/amttax.jpg") no-repeat center center;}.expiring-page.nitro-lazy{background-image:none !important;}ul.expiring-stock-class li{border-bottom:1px solid rgba(128,128,128,.28);line-height:46px;margin-bottom:10px;}.amt-credit-iso-page-text p{font-family:eight;color:#384554;font-size:19px;line-height:27px;margin:0px;padding-top:20px;font-weight:300;}.amt-credit-iso-page-text li{font-family:eight;color:#384554;line-height:1.5em;margin-bottom:12px;padding-bottom:12px;font-size:19px;font-weight:300;border-bottom:1px solid rgba(128,128,128,.17);}.amt-credit-iso h1{color:#fff;color:#fff;display:table-cell;vertical-align:middle;text-align:center;font-family:eight;font-size:80px;padding:30px 0px;}ul.general-tax-backgound{margin-top:15px;}td.empty-td-class{padding:15px !important;}.senanrio-class th{text-align:center !important;}.custom-table th{text-align:center !important;}td.empty-td-class{padding:18px !important;}.regular-tax-sale-class td{text-align:center;}.senanrio-class{margin-top:30px;}.amt-credit-iso-page-text h3{font-family:eight !important;color:#7da3c7 !important;line-height:32px !important;font-size:25px !important;margin:20px 0 0 !important;font-weight:600 !important;}.custom-table h3{margin-bottom:20px !important;}.amt-credit-iso-page-text{padding-top:20px;}.amt-credit-image img{width:100%;margin-top:20px;}.amt-credit-iso{background:url("https://cdn-ceeim.nitrocdn.com/TMwioygwoLoccegJInrjtDDKgKjNOgjH/assets/images/optimized/rev-af7e101/employeestockoptions.com/wp-content/uploads/2017/07/11.jpg") no-repeat center center;}.amt-credit-iso.nitro-lazy{background-image:none !important;}.amt-credit-iso-page-text td,.amt-credit-iso-page-text th{font-family:eight !important;}.example-class p{padding-top:0px;}.custom-post-class ol li:before{content:"" !important;padding-right:0px;}.custom-post-class ol li{font-size:18px;letter-spacing:.1px;font-family:eight;}.custom-post-class hr{border-color:#a6a8ab;}.custom-post-class ul li{font-size:18px;letter-spacing:.1px;font-family:eight;line-height:30px;}.custom-post-class ul li:before{content:"" !important;padding-right:0px;}.blue_sky{background:#eff5ff;padding:35px 10px 35px 10px !important;margin-top:20px;font-family:eight !important;}.blue_sky{display:table;padding:35px 8px;font-family:eight !important;font-size:13px;}p.email-class a{color:#0d1c46;}p.telephone-class a{color:#0d1c46;}.recent-posts-page-text p{font-family:eight !important;line-height:28px !important;}.feautured-image-class{margin-bottom:20px;}.blue_sky strong{font-family:eight !important;}.exerciseloan-page-text .amttax-page-text-two.overview-page-text ol li{list-style:inherit;}html body section.header_top p span{font-size:112%;}@media only screen and (min-width: 1399px){.topheader_add br{display:none;}}@media (max-width: 991px) and (min-width: 768px){.col-lg-2.col-md-2.topheader_search{width:30%;}.top_header_bar .topheader_social{display:block !important;width:20%;float:right;}}@media (max-width: 1199px) and (min-width: 992px){.top_header_bar .topheader_search{display:block !important;width:20%;float:right;}.top_header_bar .topheader_add{width:60%;}.col-lg-2.col-md-2.topheader_search{width:20%;float:left;}.top_header_bar .topheader_social{width:20%;}}@media (min-width: 768px){.top_header_bar>.row{display:flex;align-items:center;}}.custom-post-class .rp4wp-related-posts{display:none;}body{max-width:100% !important;width:auto !important;}#rs-demo-id{}

Tax Consequences When Exercising Stock Options

Related Posts

No Comments.