amt_iso_optimize
POST /api/v1/amt-isoReturns a multi-year Incentive Stock Option (ISO) exercise schedule that maximizes after-tax Net Final Value (NFV) while minimizing federal and state Alternative Minimum Tax (AMT) across the horizon, accounting for AMT credit recovery in later years, qualifying-disposition timing, grant expiration, and the post-termination exercise window. The optimizer searches its full discretized candidate space and refines the result share by share, matching a brute-force maximum to the cent on the published tractable case. Its post-termination partial-exercise figure is scanned, so it can land a few shares off the exact optimum. Timing fields are measured from the current date.
| Field | Type | Required | Description |
|---|---|---|---|
| shares | integer | yes | Total ISO shares to exercise across the horizon. |
| strike | number | yes | Strike price per share, USD. |
| fmv | number | yes | Fair market value per share today (year 1). |
| expectedGrowth | numberstring | no | Arithmetic-mean annual growth rate, e.g. 0.10 for 10%/year. Required unless `ticker` resolves it from trailing CAGR. Also accepts the string "market" to use the S&P 500 trailing average when the user has no view. |
| ticker | Ticker | no | |
| volatilityDrag | number | no | Multiplicative haircut at the planning horizon. Either this OR `volatility` is required; if both are supplied, `volatilityDrag` wins. |
| volatility | number | no | Annualized volatility (sigma) of the stock. Either this OR `volatilityDrag` is required; if both are supplied, `volatilityDrag` wins. Derived drag = 1 - exp(-(sigma^2 / 2) * horizon). |
| filingStatus | FilingStatus | yes | |
| ordinaryIncome | number | yes | Annual ordinary income excluding the exercise. Taxable income after deductions, not gross wages: regular tax is figured on it as given. For the AMT the calculation adds the standard deduction back (Form 6251, line 2a), unless `itemizedTaxes` is given, in which case it adds back those taxes instead. |
| itemizedTaxes | number | no | Only if you itemize deductions: the state and local taxes deducted on Schedule A, line 7. The AMT adds these back instead of the standard deduction. Omit if you take the standard deduction. When omitted, the AMT add-back defaults to the full standard deduction. |
| stateCode | StateCode | yes | |
| carryforwardCredit | number | no | Existing federal AMT credit from prior years. Optional; defaults to 0 (most first-time exercisers have none). |
| horizon | integer | yes | Planning horizon in years. |
| cashReturnRate | number | no | Annual after-tax return on idle cash, used to time-value AMT premiums. Optional; defaults to 0.04 when omitted. |
| grantDate | IsoDate | yes | ISO grant date. Drives the 10-year expiration and 2-year qualifying-disposition gate. |
| hasLeftCompany | boolean | yes | |
| terminationDate | IsoDate | null | no | Termination date if departed; null otherwise. When set, opens the 90-day post-termination exercise window. |
Example request
{
"shares": 10000,
"strike": 2,
"fmv": 200,
"expectedGrowth": 0.15,
"volatility": 0.5,
"filingStatus": "married_joint",
"ordinaryIncome": 400000,
"stateCode": "CA",
"carryforwardCredit": 0,
"horizon": 4,
"cashReturnRate": 0.05,
"grantDate": "2022-01-15",
"hasLeftCompany": false,
"terminationDate": null
}Example response (show)Example response (hide)
{
"ok": true,
"result": {
"crossoverShares": 78,
"crossoverBargain": 15450.000000000011,
"alreadyInAmt": false,
"schedules": {
"lumpSum": {
"label": "lump_sum",
"years": [
{
"year": 1,
"shares": 10000,
"bargain": 1980000,
"amti": 2412200,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 670526,
"tmtState": 168854.00000000003,
"amtOwedFederal": 589330,
"amtOwedState": 137121.68200000003,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 839064
},
{
"year": 2,
"shares": 0,
"bargain": 0,
"amti": 432200,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 76870,
"tmtState": 21597.31,
"amtOwedFederal": 0,
"amtOwedState": 0,
"stateTaxOnSpread": 0,
"creditRecovered": 4326,
"cashTax": 108286.318
},
{
"year": 3,
"shares": 0,
"bargain": 0,
"amti": 432200,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 76870,
"tmtState": 21597.31,
"amtOwedFederal": 0,
"amtOwedState": 0,
"stateTaxOnSpread": 0,
"creditRecovered": 4326,
"cashTax": 108286.318
},
{
"year": 4,
"shares": 0,
"bargain": 0,
"amti": 432200,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 76870,
"tmtState": 21597.31,
"amtOwedFederal": 0,
"amtOwedState": 0,
"stateTaxOnSpread": 0,
"creditRecovered": 4326,
"cashTax": 108286.318
}
],
"totalTax": 1163922.954,
"baselineRegularTax": 450449.272,
"exerciseTax": 713473.6819999999,
"creditEarned": 589330,
"creditRecovered": 12978,
"creditRemaining": 576352,
"grossGain": 2187625.781249999,
"federalLTCG": 509969.9359374998,
"stateLTCG": 265821.2489062499,
"amtPremiumFV": 827320.9133752501,
"nfv": 584513.6830309993
},
"evenSplit": {
"label": "even_split",
"years": [
{
"year": 1,
"shares": 2500,
"bargain": 495000,
"amti": 927200,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 215470,
"tmtState": 64357.77250000001,
"amtOwedFederal": 134274,
"amtOwedState": 32625.454500000007,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 279511.7725
},
{
"year": 2,
"shares": 2500,
"bargain": 507499.99999999994,
"amti": 939700,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 218970.00000000003,
"tmtState": 65451.52250000001,
"amtOwedFederal": 137774.00000000003,
"amtOwedState": 33719.20450000001,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 284105.5225
},
{
"year": 3,
"shares": 2500,
"bargain": 520312.49999999994,
"amti": 952512.5,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 222557.50000000003,
"tmtState": 66572.61625,
"amtOwedFederal": 141361.50000000003,
"amtOwedState": 34840.29825000001,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 288814.11625
},
{
"year": 4,
"shares": 2500,
"bargain": 533445.3124999998,
"amti": 965645.3124999998,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 226234.68749999994,
"tmtState": 67595.17187499999,
"amtOwedFederal": 145038.68749999994,
"amtOwedState": 35862.853874999986,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 293513.85937499994
}
],
"totalTax": 1145945.2706250001,
"baselineRegularTax": 450449.272,
"exerciseTax": 695495.9986250001,
"creditEarned": 558448.1875,
"creditRecovered": 0,
"creditRemaining": 558448.1875,
"grossGain": 2187625.781249999,
"federalLTCG": 509969.9359374998,
"stateLTCG": 265821.2489062499,
"amtPremiumFV": 748191.6685143125,
"nfv": 663642.9278919369
},
"optimized": {
"label": "optimized",
"years": [
{
"year": 1,
"shares": 1814,
"bargain": 359172,
"amti": 791372,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 177438.16000000003,
"tmtState": 52472.8225,
"amtOwedFederal": 96242.16000000003,
"amtOwedState": 20740.504500000003,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 229594.98250000004
},
{
"year": 2,
"shares": 2797,
"bargain": 567790.9999999999,
"amti": 999990.9999999999,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 235851.47999999998,
"tmtState": 69999.37,
"amtOwedFederal": 154655.47999999998,
"amtOwedState": 38267.051999999996,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 305534.85
},
{
"year": 3,
"shares": 2728,
"bargain": 567764.9999999999,
"amti": 999964.9999999999,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 235844.19999999998,
"tmtState": 69997.55,
"amtOwedFederal": 154648.19999999998,
"amtOwedState": 38265.232,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 305525.75
},
{
"year": 4,
"shares": 2661,
"bargain": 567799.1906249998,
"amti": 999999.1906249998,
"regularFederal": 81196,
"regularState": 31416.318,
"tmtFederal": 235853.77337499996,
"tmtState": 69999.94334375,
"amtOwedFederal": 154657.77337499996,
"amtOwedState": 38267.62534375,
"stateTaxOnSpread": 0,
"creditRecovered": 0,
"cashTax": 305537.71671874996
}
],
"totalTax": 1146193.29921875,
"baselineRegularTax": 450449.272,
"exerciseTax": 695744.0272187501,
"creditEarned": 560203.613375,
"creditRecovered": 0,
"creditRemaining": 560203.613375,
"grossGain": 2187625.781249999,
"federalLTCG": 509969.9359374998,
"stateLTCG": 265821.2489062499,
"amtPremiumFV": 743603.6508405625,
"nfv": 668230.9455656868
}
},
"stateHasAmt": true,
"bargainPerShare": 198,
"timing": {
"grantExpiration": "2032-01-15T00:00:00.000Z",
"qdEligibleDate": "2024-01-15T00:00:00.000Z",
"exerciseWindowClose": null,
"maxHorizon": 5,
"daysUntilWindowClose": null,
"windowClosed": false,
"qdNotYetEligible": false
},
"effectiveHorizon": 4,
"lastExerciseYear": 4
}
}