Do we have to pay state taxes when we exercise ISOs?

October 10, 2014

Subject:   Re: Incentive Stock Options – Executive Tax Planning
Date:   Wed, 14 Feb 2007
From:   June

Michael,

Thank you for sending me the rep9ort. It is very informative.

I just have a quick question. If we exercise ISOs, do we have to pay state tax for the tax preference?

Thanks
June

Answer

Date:   28 Feb 2007

Hello June,

The answer varies by state. If you live in California, the answer is yes. Check to see if your state has an alternative minimum tax. If so, then study the instructions for that tax.

Good luck!

Mike Gray

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

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