Equity comp

AMT often sneaks up on employees who exercise ISOs The AMT Trap: Why My Dad Got Hit AMT often sneaks up on employees who exercise ISOs because: Regular tax doesn’t recognize income at exercise, but AMT does. If the company’s fair market value has risen significantly, even exercising without selling can create substantial AMT liability. This is why: Timing matters Quantity matters And projections matter a lot Tech Equity Compensation Is Powerful But Only If Tracked Well Most t

When I was taking my first accounting classes in college, my dad casually mentioned that years earlier he had owed this crazy thing called the Alternative Minimum Tax (AMT). He couldn’t understand why and nothing about his income felt unusual, yet he ended up with a much bigger bill than expected. As I learned more, it hit me: it must have been tied to the Incentive Stock Options (ISOs) he received when he worked at AOL (a bygone era of dial-up tones and CDs in the mail, righ

Filing an 83(b) election is a strategic financial decision for anyone receiving restricted stock in high-growth companies, from Silicon Vall