Exercising an Incentive Stock Option Can Create AMT Before the Founder Sells Shares
Exercise price, fair value, and two tax-basis systems belong in the cash plan.
TOPIC COLLECTION
Equity compensation
A focused reading path from Owner Pay Review. Start with the question closest to your situation, then review the linked sources and documentation steps.
Nonstatutory Option Exercise Can Create Owner Wages Without a Cash Salary Payment
The compensation spread also changes the shares’ basis.