Do ISO's keep marking to market each year? If I exercised ISO's in'16 and paid AMT on a 2/sh unrealized gain, and in '17 the FMV increased, do I pay AMT again?

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Do ISO's keep marking to market each year? If I exercised ISO's in'16 and paid AMT on a 2/sh unrealized gain, and in '17 the FMV increased, do I pay AMT again?

The stock you acquired via an ISO and continue to own is not "marked to market" every year. Your exercise of the ISO set your basis both for regular tax and the AMT. You have nothing to report, nothing to pay, until you sell that stock.

Tom Young

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Do ISO's keep marking to market each year? If I exercised ISO's in'16 and paid AMT on a 2/sh unrealized gain, and in '17 the FMV increased, do I pay AMT again?

The stock you acquired via an ISO and continue to own is not "marked to market" every year. Your exercise of the ISO set your basis both for regular tax and the AMT. You have nothing to report, nothing to pay, until you sell that stock.

Tom Young

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