Tax and equity compensation

ISO exercise and AMT

Estimate the alternative minimum tax triggered by exercising and holding incentive stock options, find the largest exercise that stays AMT-free (the crossover), and see the cash the exercise needs.

The options

ISOs available to exercise

Strike price

Current fair market value

409A value for private stock, market price for public. Warns if below strike.

Shares to exercise (scenario)

At most the number available.

Grant date

Exercise date

Defaults to today.

Tax profile

Filing status

Regular taxable income before exercise

After the deduction chosen below.

Deduction basis

Both the standard deduction and state and local taxes are added back for AMT.

State and local taxes deducted

Used only when itemized is selected.

Long-term capital gains included above

Keeps preferential rates inside the AMT.

Include California AMT

AMT due for this exercise

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Loading tax parameters.

AMT due vs. shares exercised

Show the math

Assumptions and limits