Alternative Minimum Tax (AMT)
Alternative Minimum Tax (AMT)
Alternative Minimum Tax (AMT)
The Alternative Minimum Tax (AMT) is a separate tax system that exists alongside the regular income tax system. It was designed to ensure that high-income individuals pay a minimum amount of tax by limiting certain deductions and credits that can reduce taxable income. If your income exceeds the AMT exemption amount, you need to calculate your tax liability under both the regular tax system and the AMT system, and pay the higher amount.
Exercising incentive stock options (ISOs) can trigger the AMT because the spread between the exercise price and the fair market value of the stock at the time of exercise is included as income for AMT purposes. If you exercise ISOs and don't sell the stock in the same year, you would need to add the spread to your income when calculating AMT.
To calculate AMT, you need to determine your Alternative Minimum Taxable Income (AMTI), which includes your regular income plus certain adjustments and preference items. The AMTI is then reduced by the AMT exemption amount, which varies depending on your filing status. The exemption amount starts to phase out once your AMTI reaches a certain threshold. The remaining AMTI is then subject to the AMT tax rates, which are either 26% or 28%, depending on your income level.
If you owe AMT, you may be eligible for an AMT credit, which can be used to reduce your tax obligation in future years. It's important to consult with a tax professional to understand how exercising stock options may impact your tax liability and to explore strategies to minimize AMT, such as selling the stock in the same year or considering early exercising with an 83(b) election.
The information contained herein is provided for informational and educational purposes only. None of the information provided represents an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, nor does it constitute an offer to provide investment advice or service. Any information relating to company financing, valuation, or capitalization information should be independently verified by you in connection with any investment decision. The material is based in part on information from third-party sources that we believe to be reliable, but which have not been independently verified by us and for this reason we do not represent that the information is accurate or complete. There may exist other material non-public information that impacts the valuation of any securities. Past performance is not indicative of future results.
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Securities are offered through FNEX Capital LLC (“FNEX”), Member FINRA/SIPC, located at One Indiana Square, Suite 2252, Indianapolis, IN 46204. FNEX does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. You can review the BrokerCheck for FNEX here. Investments in private offerings are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in such offerings. Investments in private offerings are illiquid and those investors who cannot hold an investment for an indeterminate period should not invest. Past performance is not indicative of future results.
Nothing set forth here shall constitute an offer to sell any securities or a solicitation of an offer to purchase securities in any jurisdiction. Any offer to sell or solicitation of an offer to purchase shall be made only to qualified investors through a private placement memorandum or associated offering document ("Offering Document"). The specific terms of an investment are subject to the Offering Document, which will contain additional information not set forth here, including a description of certain risks of investing, which will be material to any qualified investors decision to invest.
Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment.
The information contained herein is provided for informational and educational purposes only. None of the information provided represents an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, nor does it constitute an offer to provide investment advice or service. Any information relating to company financing, valuation, or capitalization information should be independently verified by you in connection with any investment decision. The material is based in part on information from third-party sources that we believe to be reliable, but which have not been independently verified by us and for this reason we do not represent that the information is accurate or complete. There may exist other material non-public information that impacts the valuation of any securities. Past performance is not indicative of future results.
This site is operated by Gondola Technologies, Inc. (“Company”), which is not a registered broker-dealer. The Company does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities posted here are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. The Company has not taken steps to verify the adequacy, accuracy, or completeness of the information. Neither the Company nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind related to the adequacy, accuracy or completeness of any information on this site or the use of information on this site. By accessing this site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy.
Securities are offered through FNEX Capital LLC (“FNEX”), Member FINRA/SIPC, located at One Indiana Square, Suite 2252, Indianapolis, IN 46204. FNEX does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. You can review the BrokerCheck for FNEX here. Investments in private offerings are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in such offerings. Investments in private offerings are illiquid and those investors who cannot hold an investment for an indeterminate period should not invest. Past performance is not indicative of future results.
Nothing set forth here shall constitute an offer to sell any securities or a solicitation of an offer to purchase securities in any jurisdiction. Any offer to sell or solicitation of an offer to purchase shall be made only to qualified investors through a private placement memorandum or associated offering document ("Offering Document"). The specific terms of an investment are subject to the Offering Document, which will contain additional information not set forth here, including a description of certain risks of investing, which will be material to any qualified investors decision to invest.
Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment.
The information contained herein is provided for informational and educational purposes only. None of the information provided represents an offer to buy or sell, or the solicitation of an offer to buy or sell, any security, nor does it constitute an offer to provide investment advice or service. Any information relating to company financing, valuation, or capitalization information should be independently verified by you in connection with any investment decision. The material is based in part on information from third-party sources that we believe to be reliable, but which have not been independently verified by us and for this reason we do not represent that the information is accurate or complete. There may exist other material non-public information that impacts the valuation of any securities. Past performance is not indicative of future results.
This site is operated by Gondola Technologies, Inc. (“Company”), which is not a registered broker-dealer. The Company does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities posted here are being offered by, and all information included on this site is the responsibility of, the applicable issuer of such securities. The Company has not taken steps to verify the adequacy, accuracy, or completeness of the information. Neither the Company nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind related to the adequacy, accuracy or completeness of any information on this site or the use of information on this site. By accessing this site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy.
Securities are offered through FNEX Capital LLC (“FNEX”), Member FINRA/SIPC, located at One Indiana Square, Suite 2252, Indianapolis, IN 46204. FNEX does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform. You can review the BrokerCheck for FNEX here. Investments in private offerings are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in such offerings. Investments in private offerings are illiquid and those investors who cannot hold an investment for an indeterminate period should not invest. Past performance is not indicative of future results.
Nothing set forth here shall constitute an offer to sell any securities or a solicitation of an offer to purchase securities in any jurisdiction. Any offer to sell or solicitation of an offer to purchase shall be made only to qualified investors through a private placement memorandum or associated offering document ("Offering Document"). The specific terms of an investment are subject to the Offering Document, which will contain additional information not set forth here, including a description of certain risks of investing, which will be material to any qualified investors decision to invest.
Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment.