medium · Certified Financial Planner Investment Planning

The Calder household client holds Incentive Stock Options (ISOs).

To avoid a 'time trap' calculation, the CFP curriculum suggests that the client should exercise these options up to what specific 'crossover' point?

  1. The point where the Bargain Element exceeds the $19,000 annual exclusion.
  2. The point where total income exceeds the $160,000 HCE threshold.
  3. The point where the Long-Term Capital Gain rate hits 20%.
  4. The point where the Tentative Minimum Tax equals the Regular Tax.

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