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T
t123
February 3, 2024
Question

What if the fair market value of the startup company shares is lower than the exercise price? Do I need to report AMT in this situation?

  • February 3, 2024
  • 1 reply
  • 0 views
Turbo does not allow you to enter a negative number. 

The FMV is $2 per share and the exercise price is $3 per share. 

$2-$3= -$1

1 reply

R
RobertB4444
February 5, 2024

Your option is "out of the money" or valueless in that case.  So you would just buy the stock and not exercise the option.  If you exercised the option anyway it isn't reported.  You just paid $3 for the stock.  

 

@t123 

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