Alternative Minimum Tax
Alternative Minimum Tax is essentially a separate tax system in the United States wit its own set of tax rates and deduction rules, all of which are usually less generous than the regular rules.
In the startup context, an Alternative Minimum Tax issue can occur in the realm of incentive stock options (ISOs). Since the alternative minimum tax rules have no special treatment for incentive stock options, an ISO grantee may be subject to the alternative minimum tax on the exercise of such stock options.
About the Author
Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.
