Could I end up paying more than 35% tax on held ISOs?

October 10, 2014

Date:   Sun, 18 Feb 2007
From:   Dominick

I have deep in the money ISOs that expire shortly. I am in the 35% tax bracket, and am otherwise subject to a significant AMT payment already. My choice is to either exercise the ISOs and pay 2007 AMT (at 28%) or to sell them at market for income this year. If I exercise and hold for at least one year, could I ever pay a total of more than the 35% rate for these options?


Date:   28 Feb 2007
Hello Dominick,

Possibly. Especially if the value of the stock goes down. Please go to our web site and get a copy of our article, “Incentive Stock Options – Executive Tax and Financial Planning Strategies”.

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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