Re: AMT tax article: fwd from another list

From: Jeff Bone (
Date: Fri Apr 13 2001 - 13:34:09 PDT

Tom WSMF wrote:

> Ok, show of hands. Your sporting 1million $ of worth on paper and it all
> hinges on stock options on a company you work for and whos value was doing
> the tech market tumble. How many DO NOT bother to keep an eye things?

Tom, had you ever even *heard* of AMT before this year?

My point is that this is not so much a matter of attention span of a user as it
is surface area of the tax code. True, AMT is a pretty obvious thing to be aware
of for people in Chou's circumstance, but regardless of that there's too much
there for any non-finance person to try and track. (Even the finance guys have a
hard time in complicated situations, my return extension beind an obvious result
of that. :-)

Further, whether Chou was in the following situation or not, this again speaks to
the concern I expressed earlier: that the tax code treats as taxable events
paper gains on assets before they are even *liquid* in some cases.

Bottom line: capital gains should be assessed when the asset is *sold,* never


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