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Help!

Has anyone found a site where you can calculate how many stock options you can exercise before you trigger the Alternative Minimum Tax (AMT)?

If so, I would love to know.

Thanks in advance for the assistance.

Carlos
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Has anyone found a site where you can calculate how many stock options you can exercise before you trigger the Alternative Minimum Tax (AMT)?

Carlos -- Technicality, but it's a matter of the dollar value of the "bargain element," not the numbers of stock options. In any event, according to the Ernst & Young Tax Guide of last year, and there's no reason to think it has changed materially, the total dollar value of all your preference items can't exceed approximately $30-35,000, depending on your filing status and income level. If it's important to find the exact amount, I'd suggest getting a copy of that guide; it's the only place I've seen it spelled out that way.

Preference items are varied, but the most common ones, affecting most folks, are your state and local income taxes and real estate taxes, both of which are taken as deductions in your normal tax return.

Having said all that, AMT isn't the end of the world. It's a pain, but since you already know about it, at least it won't catch you by surprise. That's often the case, which is far worse.

mathetes
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Help!

Has anyone found a site where you can calculate how many stock options you can
exercise before you trigger the Alternative Minimum Tax (AMT)?

If so, I would love to know.

Thanks in advance for the assistance.


It depends on all the other factors involved in your income tax reporting. If you want a calculator that will show you the "breakeven" by putting in all your other data and then feeding various line 10s in download the free demonstrator 2210 calculator on www.edcosoft.com that will do this for the year 1999 or 2000. Ed
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