Do I have to sell my stock to claim my AMT credit?
July 23, 2001
Date: Tue, 29 May 2001
I like the page on ISO’s and AMT tax, however…
It still is not clear to me if you must sell your stock to be able to start claiming a credit on previously paid AMT taxes. For instance, I exercised stock in 2000, and can’t sell them now, since they are not worth much, and my regular tax will be more than AMT tax this year. Can I get a credit for paying AMT last year on the exercise?
Date: 11 May 2001
You aren’t required to sell your ISO stock to use your AMT credit.
However, the credit can be used up to the excess of the regular tax over the tentative alternative minimum tax. The bigger the difference, the more credit can be used, so you tend to use most of it when you sell your ISO stock.