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Subject:   AMT on incentive stock options
Date:   Sun, 1 Apr 2001
From:   Debbie

I am preparing my tax return. I am unclear on how much of the amount subject to the AMT tax for incentive stock options should be. Line 10 says "enter excess of AMT income over regular tax income." If my incentive stock options subject to amount is $100,000.00 and my regular tax amount is $50,000 what amount do I put on line 10? Thank you

Debbie

Answer

Date:   Wed, 25 Jul 2001

Hello Debbie,

The amount at line 10 of Form 6251 is generally the excess of the fair market value of the stock received on the date of exercise over the option price.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.