Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
<<The problem is AMT. In the year of exercise I pay, more or less, 28% of the fair market value on
the day of exercise. If I hold the stock for 18+ months and sell I can, more or less, use the AMT I
paid to pay the 20% tax due on the fair market value on the day of sale -- the AMT thus being a
pre-payment of tax. The AMT law is silent so far as I know on disposal of stock through charitable
donation and there is no obvious way of recovering the 28% tax paid except in drips over many
decades as my regular tax might exceed my AMT.>>

KAT gave you his take on this issue, and I would agree with that take.

And, I don't know of any method ("agressive" or otherwise) that will change the facts of your situation, or would allow you to "ignore" the AMT implications on the granting (or exercise) of the options.

If you run across any additional information on this, please post the information here. I would also be interested to see the theory behind the proposed action.

TMF Taxes
Roy
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.