Do I need to file an 83(b) election and AMT form?
September 26, 2011
Subject: Short Question
Date: Fri, 22 Jan 2010
Hi Mr. Gray
I am employed by a pre-IPO company and was awarded X incentive stock options with a 4-year vesting plan from 2006 to 2010. I have been exercising my vested incentive stock options regularly. Now, all of my ISO have vested and been exercised.
I heard that after each exercise I should have submitted a Section 83(b) election within 30 days to get my capital gains clock ticking. I paid the AMT tax for 2008 and 2009, and will for 2010. I did not submit the AMT form for 2007 because I didn’t owe the tax.
Should I have sent a Section 83(b) election to the IRS within 30 days after exercise?
Is there a problem since no AMT form was filed for 2007?
Date: 5 Feb 2010
You are okay.
No Section 83(b) election was necessary because the ISOs that you exercised were VESTED!
The AMT form is not required to be submitted, even when you exercise an ISO, when there is no AMT due and no AMT credit carryover.
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