" Just to clarify that my stock option contract from the employer actually says this is an ISO. But W2 box 12 they use the generic description of 'V'"
A Qualified stock option, which is what a "real" ISO is, is a legal definition and has certain tax attributes. One of the tax attributes is that you don't recognized compensation at EXERCISE, only on a disqualifying SALE. So either showing income on the W-2 in 2016 with code V is wrong or the company was using the term ISO incorrectly and it really was a NQSO. You used the terms "NSO" and "non-statutory" in your post and the V code back that up.
"would exercising the NSO be subject to AMT in 2016"
Only in the very loose sense of being included in your AMT taxable income, just like your salary, interest income, etc. Certainly not in the sense of being treated DIFFERENTLY in determining your AMT Taxable Income than how it was treated in determining your "regular" Taxable Income. The exercise of an ISO without a sale of the stock in the same year IS treated differently when determining taxable income under regular taxes and AMT. And subsequent sales of ISO stock are treated differently when determining regular taxable income and AMT taxable income.
The sale of the stock at a profit will be reduced by capital loss carryovers.
