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Date:   Thu, 8 Feb 2001
From:   Kevin

I exercised both vested and non-vested ISOs in 2000. The lockup period for these shares ended in 1/2001. Do I need to pay AMT for the unvested shares on my 2000 taxes?

Thanks, Kevin Regan

Answer

Date:   15 Feb 2001

Hello Kevin

If the shares were in fact unvested as of the end of 2000 and you did not make a Section 83(b) election, the AMT adjustment for the shares is not reported for 2000 but will be reported for when the shares vest.

Good luck!

Mike Gray

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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.