Thank you Tom! That worked.
You are correct that Turbotax's interview logic is faulty. If you answer "yes" to the "Sold Stock" question, they should have an additional page asking if the "stock or securities is traded on an established securities market?". Only if that answer is "yes" should they deny the installment. I don't know how to tell TurboTax of their logic gap though.
Thank you for covering AMT. I failed to mention that when I exercised the options, I went through the AMT interview and was not subject to AMT.
Now I have follow-on questions.
Since the last lot was exercised less than a year before the company's sale (I missed it by 2 weeks!), that portion is short term capital gain. Will the future amounts I receive from the escrow hold backs (assuming I get anything at all), be treated as long term capital gain?
And if the answer to that question is yes, do I have to pro-rate the amount withheld evenly to each lot?
Or can I apply more to the last lot such that I receive only $1.00 (or even 0) in 2017 and the balance in future years? Hopefully, that would have the effect of shifting most of the gain on the last lot to long term.
Thanks again,
Charlie
