If stock is not transferable, do I still owe AMT when I exercise my incentive stock options?
June 23, 2004
Subject: A question about ISO
Date: Mon, 24 May 2004
My company is a private company. If I exercise an ISO, since the stock is not transferable (not publicly traded), I should not owe any AMT. Right?
Date: Fri, 28 May 2004
The transfer is taxable in the year in which the rights in the property are transferable or not subject to a substantial risk of forfeiture. Since the shares are vested, the transaction is taxable. (Internal Revenue Code Sections 83(a), 56(b)(3).)