Elmer exercises an incentive stock option (ISO)in 2014 for $6,000 (fair market value of the stock on the exercise date is $7,600).If Elmer sells the stock later in 2014 for $8,000,the AMT positive adjustment is $1,600 and the AMT negative adjustment is $2,000.

Question

Quizplus · Accepted Answer

An AMT adjustment is not required as Elmer exercised the stock option and sold the stock in the same tax year.

Elmer Exercises an Incentive Stock Option (ISO)in 2014 for $6,000