This idea is a tiny one, but it scratches an itch I have and I imagine a small market (employees of startups that issue ISO) will continue to have it in the future. I'm looking for some feedback on whether this idea is worth putting time and effort into, and whether it's worth paying for.
I have ISO that I can exercise, and I knew that they have tax advantages, but I did not realize that it would actually be taxed for exercising them under certain conditions (Alternative Minimum Tax). I thought it would be fairly straightforward to figure out if/how much I would owe, there's even a simple calculator in Carta, the service that manages my options.
Unfortunately, the calculator was too simple and didn't take into account my situation with deductions, mortgage, etc. It also didn't answer many of my questions, how does capital gains come into play? Does selling the shares after I exercise affect AMT? Is there a way to avoid AMT?
Researching the answers to all of my questions took hours, there is no single place that could explain everything in a straightforward manner.
My idea is to make a clear and straightforward guide to ISO and how they work (timing, taxes, AMT). I will also build a tool that will fairly accurately estimate taxes (if any) that you will owe based on your situation. I will put the tool and maybe some of the guide in a paid premium section for a small fee (maybe $5-10?).
Reasons to do it:
Reasons not to do it: