Is there a tax consequence for swapping incentive stock option shares?
October 19, 2006
Date: Tue, 03 Oct 2006
I had previously understood that there was no regular or AMT tax consequence from exercising ISOs by surrendering shares of the employer company (a swap).
Please confirm that this understanding was in error.
Date: Thu, 05 Oct 2006
Yes. Although there is no regular taxable income from exercising the ISO, you will have the same additional AMT income as if you paid the option price in cash.