In the current tax year,Ben exercised an incentive stock option (ISO),acquiring stock with a fair market value of $190,000 for $170,000.His AMT basis for the stock is $170,000,his regular income tax basis for the stock is $170,000,and his AMT adjustment is $0 ($170,000 - $170,000).

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The AMT basis for the stock should be the fair market value at the time of exercise, which is $190,000, not the exercise price of $170,000. The AMT adjustment is the difference between the fair market value and the exercise price, which is $20,000 ($190,000 - $170,000).

In the Current Tax Year,Ben Exercised an Incentive Stock Option