Subject: how harmful this tax is to law abiding, low income citizens Comment: Son had company stock options..in a private company. When he left, he cashed in these options for $15,000...paying cash. But he could not sell the stock for 90 days, and the company was sold and went bankrupt. Nevertheless, he had to come up with another $15,000 to pay the alternative minimum tax on what the government thought his profit was. He was out $30,000. He only makes about $90,000 a year with three children....living in expensive Boston; so he felt these stock options would make a nice nest egg. And, he was honest enough to check the box on his tax return that he had cashed in the stock options requiring him to pay the AMT. And he paid the tax...But, he could not sell the stock, the stock had no value, and he made no profit. There should have been a clause to return the tax to those who lost money after paying the tax.....on profit... |