Date:   Thu, 8 Feb 2001
From:   Kevin

I exercised both vested and non-vested ISOs in 2000. The lockup period for these shares ended in 1/2001. Do I need to pay AMT for the unvested shares on my 2000 taxes?

Thanks, Kevin Regan

Answer

Date:   15 Feb 2001

Hello Kevin

If the shares were in fact unvested as of the end of 2000 and you did not make a Section 83(b) election, the AMT adjustment for the shares is not reported for 2000 but will be reported for when the shares vest.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options – Executive Tax and Financial Planning Strategies.