easy · Certified Financial Planner Investment Planning

The Brennan household has regular taxable income of $290,000 and is considering exercising Incentive Stock Options (ISOs).

According to the 'AMT Crossover' concept, when should they stop exercising additional shares to minimize immediate tax costs?

  1. When they have exercised all vested options regardless of tax
  2. When they reach the 37% marginal ordinary tax bracket
  3. When their Adjusted Gross Income reaches $1,000,000
  4. When the Tentative Minimum Tax equals the Regular Tax

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