The recognized gain for regular income tax purposes and the recognized gain for AMT purposes on the sale of stock acquired under an incentive stock option (ISO) program are always the same because the adjusted basis is the same.

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The recognized gain for regular income tax purposes and the recognized gain for AMT purposes can differ because the adjusted basis used for calculating the gain may be different for purposes of the regular tax system and the AMT system. Under the regular tax system, the adjusted basis is typically the fair market value of the stock on the exercise date, while under the AMT system, it is the exercise price paid for the stock. This can result in a higher gain subject to AMT.

The Recognized Gain for Regular Income Tax Purposes and the Recognized