The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  AMT and LTCG Date:  3/6/2000  7:11 PM
Author:  BigBooty Number:  31050 of 123001

Hey TMFTaxes and everybody else out there!

I lucked out and joined web startup about 18 months ago. I had ISO stock options, which I excercised in May. The company has since gone public and done really really well.

So, it's now early march. 2 more months and I've got long-term capitol gains. But that 1 stock is like 99% of my portfolio, so I've obviously got a lot of market risk.

My question is in regards to AMT. I live in California, and I know that State Income taxes will eat away at any AMT credit I get every year. Earning enough income to collect a signifigant ammount of the AMT would be really hard.

So, any money that I pay in AMT is probably down the drain. If we assume that is true, it seems to me there is no tax disadvantage to me selling a big chunk of stock now. For example:

75,000 salary