Options Trading Tutorial

Is there AMT if a non-US resident exercises ISO stock options vested while in the US?

I am planning to exercise stocks options I had got vested while I was in the US (from 2001 to Oct 2004). Since then I have moved to India. I am an India Citizen. Would there be AMT implications for me in FY2006 if I exercise and hold these options?

Public Comments

1. No. There are no US tax implications.
2. Yes, there will be AMT implications. It doesn't matter that you are no longer a tax resident of the U.S. when you exercised the stock options. The stock options are assumed to be earned during the vesting period, while you were a U.S. tax resident, and would therefore be subject to tax in the US. Since ISO's are subject to tax for AMT upon exercise while it is subject to tax for regular tax purposes upon sale, you would need to file a U.S. tax return.