When must I pay taxes on my unvested ISOs?

July 23, 2001

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


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

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