On: Handcuffed to Uber

[phamilton]

> Provided you don't hit AMT

I think people downplay how easy it is to hit AMT. A single, no dependents, standard deduction filer making $120k will hit AMT after $26k of on paper gain for ISO exercise. Everything after that will be taxable. Filing jointly, 2 people who each earn $120k can absorb $18k in on paper gains from exercising ISOs. Add in a kid and it drops to $15k.

That's a paltry sum, basically breaking any advantage ISOs provide.

[limeyx → phamilton]

Yes but I believe you can (eventually) get the AMT difference back in offsets assuming there are later years when you are below the AMT limit. Fiendishly complicated and increasingly dumb though ...

[phamilton → limeyx]

That's assuming you can come up with the cash in a timely manner to pay the tax bill and your illiquid asset holds its value.

It's a rough situation and something needs to change.