Options Trading Tutorial

incentive stock options and AMT?

I bought a few incentive options from my company in 2005. Every time I asked my accountant about AMT, the answer was that because I purchased them at their fair market value at the time, I did not have to pay AMT. Now, the options are likely worth more, though the company is still private. I still don't have to pay AMT, right? I tried to read on the IRS web site, it is confusing.

Public Comments

1. Purchasing them a fmv at the time has nothing to do with selling them - if they have increased in value since then, the increase is capital gain when you sell. They might or might not make you subject to AMT depending on your income and other tax situation.