Thank you for the answer. It has partially helped me understand. Sorry, my question was not clear enough.
On 2013 start up company X granted 4000 stocks distributed over 4 years. This was split 2x resulting in 8000 stocks.
This was exercised 3 times. 2014,2015,2016 resulting in 4500 stocks exercised.
X was acquired by Y in 2016. So 4500 got cashed but a portion of the amount was put in escrow to be distributed in 2 installment. 1st installment we received in 2016.
The rest of 3500 stocks were converted to company Y stocks on acquisition,2016.
On Company Y provided 1099-B, we have 2 entries.
1. 4500 stocks * x = amount1
2. 4500 stocks * y = amount2 - This is escrow 1st installment
So they have totaled it to 9000 stocks, eventhough we had only 4500 stocks. This is where it is confusing. How do we report tax for the second part ?
Also we did not file any AMT in any previous tax year. Would this impact the 2016 tax calculation ?
Thank you.
