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LESS TO THE AMT-ISO BONE THAN MEETS THE EYE?

December 11, 2006

Kaye Thomas has an excellent discussion of the new tax break designed to help taxpayers who incurred big alternative minimum tax bills from the exercise of incentive stock options.

The article points out a feature that I had missed: under the bill, the 20% annual refundable minimum tax credit is computed on a declining amount. If you have a $1 million carryforward, your maximum credit is $200,000 the first year, $160,000 the second year (20% of the remaing $800,000), and so on.

My prior article on this break, now updated, is here.

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