@RobertB4444 , thanks for the reply! I did not sell these early exercise ISO.
If i'm understanding your reply correctly, for all the early exercised ISO, i should only need to file the spread between FMV and strike into AMT portion, e.g. use the 6251 form? No need to worry about the regular income tax bracket ?
But will the FMV be the every month price when my early ISO vested or just the FMV when i early exercised ISO ?
Let's say i early exercised 20,000 ISO in Jan/2021, FMV was $10, strike price $2, ISO vested in a monthly cadence.
12,000 of them fully vested to me via the 12 months in 2021 and 80,000 will be vested in 2022.
For 2021, should I only need to file the 12,000 ISO vested in 2021 or all the 20,000 ISO ? I read some articles saying that without 83(b) election, the spread will be the FMV (when ISO "real" vested ) less the strike prices, since the stock prices varied for 12 months in 2021, do i need to find every month stock price at vested time and calculated the spread accordingly ?
Or i just calculate the whole AMT amount as ($10 - $2 ) * 20,000 ? If so, how will this be different from filing a 83(b) election ?
I tried to do the "ISO exercise and hold" directly in turbo tax, it seems calculate the spread into regular Federal income tax, which is very confusing. Please advise, thanks.
