Should sebastian report as an excess of amt income

Reference no: EM133261368

Sebastian is an employee of XYZ Corporation. XYZ granted Sebastian an incentive stock option on January 1, 2018. The option gave him the right to purchase 1,000 shares of XYZ for $5,000, which was the fair market value of the stock at the time the option was granted. Sebastian exercised his option on February 14, 2020, when the fair market value of the stock was $11,000. He did not sell or dispose of the stock that year.

When he prepares his 2020 return, what amount should Sebastian report as an excess of AMT income over regular tax income on Form 6251, Alternative Minimum Tax - Individuals?

$5,000

$6,000

$11,000

Reference no: EM133261368

Questions Cloud

Determine the return on equity for the two policies : Contemplating the appropriate level of current assets. The decision to determine the appropriate level of current assets will be based on return on equity.

Explain the major crimes against the person : Create neat infographic that depicts the categorization of crime. It should include explanations of major "Crimes Against the Person".

How much compensation does elisabeth in income : How much compensation does Elisabeth include in her 2020 income as a result of exercising this option?

Which has a substantial risk of forfeiting-losing property : Which term refers to the process by which property becomes transferable, and a taxpayer no longer has a substantial risk of forfeiting, or losing the property?

Should sebastian report as an excess of amt income : What amount should Sebastian report as an excess of AMT income over regular tax income on Form 6251, Alternative Minimum Tax - Individuals?

Advantages or disadvantages of such a policy change : Discuss what would be the advantages or disadvantages of such a policy change. Include in your discussions the impact on such a change on.

How should the different claims of the creditors be settled : If C is insolvent and what is left of him is a land valued at 20,000, how should the different claims of the creditors be settled?

Importance of the national government in compliance : For you, what is the importance of the National government in compliance and registration of business entities.

Describe the three categories of primary authorities : Briefly describe the three categories of primary authorities and the types of authorities within each category.

User Account

All Pages