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Subject:  Financial/Tax Planners - ISO AMT Date:  1/31/2000  11:23 PM
Author:  ceb73 Number:  26564 of 121585

Any ideas on how to locate a Financial/Tax Planner who understands ISO AMT and exercise planning?

I've found an excellent tax accountant who knows how to properly insert the correct values and grind the numbers using professional tax prep tools (good for looking at only one year), but this is not enough.

What I need is a multi-year planner with appropriate risk assessment and management to prevent becoming badly upside down because of a market correction that reduces a momentum inflated valuation down to one where a value investor (aka a "Foolish" small cap investor) will buy it.

LGTO is recient example where a small fry insider could easily get hurt by going into a year end blackout in good shape and come out upside down and having to sell far more than expected to pay AMT. Uncle Sam will eventually give back the AMT if you make enough money and live long enough, but you've lost forever the recovery and future gains.

On the other hand, if you don't exercise enough soon enough and the stock keeps skyrocketing, you'll pay a LOT more taxes.

Where do you find somebody who has significant experience in this area? I'm not interested in sending somebody else to school on my dollar.

BTW: Any thoughts on legal ways for insiders to insure themselves from getting upside down in AMT in a year-end blackout period?

Thanks,
-ceb73
Newbie "Fool", but "Foolish" style investor since 73.

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