Do you ever recommend clients incur AMT?
September 10, 2001
Subject: RE: AMT Tax
Date: Thu, 23 Aug 2001
Dear Mr. Gray:
Are there option scenarios for which you have elected to incur the AMT tax. My belief has been, that with proper planning, this tax should be avoided, because of the lag in reclaiming the credit (ie. the time factor of the money paid).
Your web site is great. Thanks for the help.
Date: Fri, 7 Sep 2001
Yes, there are some cases where I plan on the client incurring an AMT.
We discuss the risk involved in this strategy before going ahead, based on the client’s choice.
Usually this involves making an exercise early in the year so the client will be able to sell the stock and have the cash to pay the tax before it’s due.