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hard · Certified Financial Planner Tax Planning

The Haddad household (MFJ) has taxable income of 290,000 and holds Incentive Stock Options (ISOs) with a $40 per-share bargain element. Their regular tax is $54,800, and their tentative minimum tax (before exercising) is $47,320.

What is the maximum number of shares they can exercise without triggering the Alternative Minimum Tax (AMT)?

  1. Approximately 719 shares
  2. Exactly 1,370 shares
  3. 7,250 shares
  4. Approximately 1,000 shares

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