Exercise ISOs in December vs. January?

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Topic Author
berg
Posts: 462
Joined: Mon Mar 18, 2013 8:43 pm

Exercise ISOs in December vs. January?

Post by berg »

We am considering exercises ISOs that will give me an AMT hit. We are already in AMT territory for 2021. I *think* the strategy would be to exercise in January instead so we can take the AMT hit for 2022 instead and potentially sell for short term gains in Dec 2022 if we wanted. But is there any reason to exercise a portion in December 2021 that I'm missing? Thanks!
Topic Author
berg
Posts: 462
Joined: Mon Mar 18, 2013 8:43 pm

Re: Exercise ISOs in December vs. January?

Post by berg »

Bump :D
babystep
Posts: 763
Joined: Tue Apr 09, 2019 9:44 am

Re: Exercise ISOs in December vs. January?

Post by babystep »

Best would be to run the numbers. All the numbers like standard deduction, marginal brackets, AMT etc. have moved up in 2022 because of inflation so it is likely beneficial to do in 2022.
Topic Author
berg
Posts: 462
Joined: Mon Mar 18, 2013 8:43 pm

Re: Exercise ISOs in December vs. January?

Post by berg »

babystep wrote: Sun Dec 05, 2021 11:00 pm Best would be to run the numbers. All the numbers like standard deduction, marginal brackets, AMT etc. have moved up in 2022 because of inflation so it is likely beneficial to do in 2022.
Thanks. I have run the numbers and know I will already be paying AMT for 2021. So I don't see much of an advantage in paying more this year vs. next year, since I'll have to pay now vs. later. The only thought was to maybe exercise a portion to spread out some risk and give me the potential to sell for LTCG in December 2022. Just not sure if I'm missing anything here!
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