Pressure-test inputs
Run a base case and a conservative case. A decision that works only under perfect assumptions needs more diligence.
Free tax planning tool
ISO Exercise and AMT Window Planner
Translate the ISO bargain element into a federal AMT screen, and estimate an exercise window around the tax threshold you choose.
No account required Educational, not individualized advice
ISO bargain element
$207,000
$11.50 per share AMT adjustment
Estimated federal AMT
$42,586
$89,442 tentative minimum tax less $46,856 modeled regular tax
Shares near a $10,000 AMT ceiling
7,719
A plus sign means the selected ceiling was not reached within the modeled search range
Remaining AMT exemption
$90,100
Modeled AMTI: $427,000
Educational estimate, updated August 23, 2026. Uses 2026 federal AMT exemption, phaseout, and 26%/28% thresholds, with filing-status-specific regular-tax brackets. The model treats taxable income plus ISO spread as AMTI and omits other Form 6251 adjustments, capital-gain AMT mechanics, state AMT, AMT credit, disposition timing, withholding, and estimated-payment rules.
How to use the result
Use the answer as a decision screen
The result is designed to expose the variables worth investigating, not to replace transaction documents, tax returns, or professional judgment.
Separate cash from tax
A tax benefit cannot rescue weak economics. Evaluate operating cash, financing, and tax effects separately.
Document before acting
Save the source documents and assumptions a CPA will need to validate the treatment.
Take the next planning step
Request a planning follow-up
The useful answer stays on the page. Share your contact information only if you want Taxstra to follow up about the planning questions this tool surfaced.
Frequently asked questions
These answers explain the model’s boundaries.
Why can an ISO exercise create AMT before a sale?
For AMT purposes, the exercise spread can be an adjustment even when the stock is not sold in the same year.
Does this calculate the AMT credit?
No. Prior-year minimum-tax credit, future recovery, disqualifying dispositions, state AMT, and special basis tracking are outside this screen.
Is the share window a recommendation?
No. It is a tax-threshold scenario. Liquidity, concentration, company risk, expiration, tender offers, and cash needs are separate decisions.
Related Taxstra resources
Continue with the services, planning tools, and explainers most relevant to this topic.