No income is recognized when an Incentive Stock Option (ISO) is exercised.
A return that includes Alternative Minimum Tax (AMT) must include in AMT income the excess of the fair market value of the stock over the amount paid. This adjustment becomes part of the AMT basis of the stock.
If the stock is sold or disposed of in the same year as the ISO, no adjustment is required.
Keep this form and use it to figure the gain or loss of the sale or disposition for the year in which the stock is sold or otherwise disposed of.