Could I end up paying more than 35% tax on held ISOs?
October 10, 2014
Date: Sun, 18 Feb 2007
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
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”.