Comments on: It’s Fall: 10 Weeks of Alternative Minimum Tax Planning Ideas…Week 6 http://www.amtblog.com/its-fall-10-weeks-of-alternative-minimum-tax-planning-ideas-week-6-2 Alternative Minimum Tax Tue, 11 Oct 2011 17:21:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: ajaynejr http://www.amtblog.com/its-fall-10-weeks-of-alternative-minimum-tax-planning-ideas-week-6-2/comment-page-1#comment-40 ajaynejr Thu, 08 Apr 2010 12:42:05 +0000 http://www.amtblog.com/?p=123#comment-40 While there may be a gentlemanly agreement between the employee and his company not to take the profit immediately after exercising the ISO, it may be desirable to sell some of the stock immediately for the purpose of paying income taxes. In other words an unfunded tax liability results immediately after exercising the ISO and this should be paid off with the profit or gain that produced that liability as opposed to paid off using other funds of the taxpayer. If the taxpayers who made the news liquidated some stock to pay the tax, then they would not have been caught by a downturn in the stock price a few months later. While there may be a gentlemanly agreement between the employee and his company not to take the profit immediately after exercising the ISO, it may be desirable to sell some of the stock immediately for the purpose of paying income taxes. In other words an unfunded tax liability results immediately after exercising the ISO and this should be paid off with the profit or gain that produced that liability as opposed to paid off using other funds of the taxpayer.

If the taxpayers who made the news liquidated some stock to pay the tax, then they would not have been caught by a downturn in the stock price a few months later.

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