Adjusted Fair market value of exercised shares (private company)

Forum|Forum|3 years ago
March 18, 2023
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Hello. I purchased some stock options of a private company (previous employer) in 2021. I had both NQ and ISO options. In 2021 I had to pay AMT due to the ISOs. The company is still private and I have heard that they cut the fair market value of the shares 50% since I exercised my shares. Is there any way for me to get an adjustment on the AMT that I paid in 2021 or am I out of luck? Thank you.

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GeorgeM777

No, there is no way to make such an adjustment. However, remember that you have one basis in the stock for AMT purposes and another basis for regular income tax purposes. This includes having separate Schedule Ds, and or Forms 8949, Sales and Other Dispositions of Capital Assets, in the event you sell your ISOs. Carryover losses may also be different.

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