Not sure what you mean by CQSO proceeds. Generally, yes, your federal return should reflect all ISOs exercised and held, including those that meet the definition of a CA Qualified Stock Option (CQSO). What you are reporting then for AMT is that difference when the fair market value of the ISO is higher than its exercise price. Regarding CQSO and federal taxes, the CA Franchise Tax Board has stated:
- ...federal law treats a California qualified stock option as a non-statutory stock option. For federal tax purposes, you recognize taxable wage income upon the exercise of a California qualified stock option. You should make an adjustment to your federal adjusted gross income for the California qualified stock option wage income you included on your federal return.
Here is a link to the FTB's Equity-Based Compensation Guidelines from which the above quoted material was obtained:
Equity-Based Compensation Guidelines
@peter1104
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