This was a startup company. While working there I received options for price X.
When I left a company I had 3 months to exercise my options with hope they will become stocks if the company goes to IPO or acquired. This is what I did and it cost me good amount of money.
In addition, when filing taxes following year, Alternative Minimum Tax (AMT) was charged.
The AMT is calculated based on the difference between the fair market value (FMV) of the shares on the date that you exercised the shares and the exercise price.
In 2018 the company was acquired by another one and they cancelled all my options.
I hope it makes clear.
