Were any reforms enacted for incentive stock option alternative minimum tax by California?

September 30, 2011

Date:   2 Feb 2009
From:   John

Hi Michael,

Your web site was GREAT/helpful for explaining the 2008 ISO AMT change enacted by Congress!

Were any similar reforms enacted for ISO/AMT by the State of California.

Just curious,


Date:   5 Feb 2009

Hello John,

No. California has not conformed to these changes and, considering its financial condition, I don’t expect California to conform. Unused minimum tax credits aren’t as big of a problem for California because the regular tax rate for the sale of stock (9.3%) is greater than the AMT rate (7%). There is still a problem when a huge value at the time an incentive stock option is exercised is erased by a declining stock market.

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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