Hi,
One of my client was awarded ISOs in 2017. He exercised part of these in 2021 (when the fair market value was much higher), but did not sell. In my opinion, he owes AMT tax to the IRS. How can I confirm this? If yes how do i calculate the AMT tax in proseries?
GK
@gk77_2 wrote:
Thank u. So when he sells the ISO he has to pay the tax on capital gain again right? How does that work.? Please advise
Quite poorly IMO. You'll be carrying an AMT credit forward via Form 8801:
https://www.irs.gov/pub/irs-pdf/f8801.pdf
It may or may not help. In the year of sale you'll have an AMT adjustment in the opposite direction (because your AMT basis is higher than your regular tax basis).
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