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Subject:   How much AMT do I have to pay if I leave the company only after one year
Date:   Tue, 12 Sep 2000
From:   Albert

I pre-purchased my ISO unvested options before the company went public. The company now has gone public and I am planning to leave the company at my first year anniversary date (before end of this year). Do I have to pay AMT tax for all purchased options or only for the first year vested amount (25%)?

Thanks
Albert

Answer

Date:   11 Oct 2000

Hello Albert,

If your unvested shares are surrendered before the end of 2000, you won’t have to pay AMT for them.

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.