Here I’ll go over the basics of RSUs, how and when they’re taxed, and some variables that influence decisions to hold or sell.
If you exercised ISOs when the price was higher than it is now (or it’s a situation you could find yourself in), be wary of an obscure situation that could lead to a big tax surprise: the wash sale.
The AMT paid on an ISO exercise is designed to be a prepayment of taxes that gets recovered in the future, but there are things to consider when triggering AMT with an ISO exercise to ensure you’re able to recover the extra taxes paid and don’t face any surprises down the road.
