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ISO Stock Options and AMT
Old 01-10-2006, 11:09 AM   #1
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ISO Stock Options and AMT

Hello all,
Im semi retired....still do some real estate.

I own shares in a private california company (from stock options) that is being bought out Feb 2006. My question is if my gain will be taxed at a long term capital gain (at 5 -10% given my income?) or the much higher dreaded AMT?

Price paid at stock option excercise $700 (2.5 years ago)
Ive held the stock for 2.5years.
Cash out value of Stock in February 2006 $275,000

My income for 2006 for IRS purposes will be around $ mortgage.

If anyone has any experience with this type of transaction...any feedback or recommendations would be appreciated.

Thanks !!


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Re: ISO Stock Options and AMT
Old 01-10-2006, 04:29 PM   #2
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Re: ISO Stock Options and AMT

This sounds complex and you should do some research and perhaps consult a professional. Were the original options non-qualified or ISOs? The tax treatment at the time you excercised is different for these types. At this point it doesn't matter that the original shares were options, you need to figure out the basis on your shares. This will determine your capital gain. The basis depends on how the options were treated when you excercised them.

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Re: ISO Stock Options and AMT
Old 01-12-2006, 12:40 AM   #3
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Re: ISO Stock Options and AMT

Check out the website which has lots of good info on employee stock options.
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