Walkthrough
See how advisingEquity turns the source data from your client's grant documents into a clear, actionable plan they can use — in three steps.
Key in the source data from the grant documents — award type, grant date, quantity, vesting, and strike price — plus the basics: income, tax bracket, state, and liquidity timeline. No document uploads.
Award entry
2,000 ISOs · $8.00 strike · granted 03/2023
Marginal tax rate
37%
Residence state
California
Liquidity target
$500K before next tax year
AMT preference history
Crossed AMT in 2021
See the math: projected tax by exercise date, AMT crossover points, concentration risk, and key deadlines mapped across the calendar.
AMT projection
$14,200
Ordinary tax saved
$22,400
Key deadline
83(b) election due within 30 days of grant
The tool produces a client-ready advisory memo with plain-language recommendations, the dates that matter, and the calculations behind each move.
Sign up to be notified when liveRecommendation
Exercise 1,000 ISOs in Q4, hold 12 months for LTCG, and review RSU withholding at vest.
Sample output
A complete run for a sample client — every metric, every calculation, and the full advisory memorandum, exactly as the tool produces it.
Client profile
Filing status
MFJ
State
California
9.3% est. bracket
W-2 income
$400,000
pre-exercise
Award
2,000 ISOs
$2.00 strike · $28.00 FMV
Exercise cost
$4,000
2,000 × $2.00
Bargain element
$52,000
AMT preference item
Est. incremental AMT
$10,140
due April 15
Cash needed
$14,140
exercise + AMT
Qualifying disposition · sale at $60.00 per share
Regular tax vs. tentative minimum tax
AMT crossover
Exercising up to 1,430 shares this year stays under the crossover with no AMT. Above that, every share adds AMT.
| Scenario | Tax character | Total tax | Net to client |
|---|---|---|---|
| Same-day sale (disqualifying) | Ordinary + payroll | $53,708 | $62,292 |
| Sale within 1 year (disqualifying) | Ordinary + short-term | $50,116 | $65,884 |
| Hold 2 yrs grant / 1 yr exercise (qualifying) | Long-term capital gain | $28,256 | $87,744 |
Holding to a qualifying disposition improves the after-tax result by $25,452 — roughly 41% more net proceeds — in exchange for concentration risk and an AMT prepayment.
Deadlines flagged: $100,000 ISO limit test at vest · 83(b) window of 30 days on any early exercise · AMT payment due April 15 · qualifying-disposition date two years from grant.
Advisory memorandum
Prepared for: Sample Client · Prepared by: advisingEquity™ · Educational illustration
The client holds 2,000 vested incentive stock options with a $2.00 strike price. The current fair market value is $28.00 per share, creating a $52,000 bargain element if all options are exercised in the current calendar year. The household files jointly, resides in California, and reports $400,000 of W-2 income before any equity activity.
Exercising all 2,000 options adds the full bargain element to alternative minimum taxable income, producing a tentative minimum tax of $92,930 against a regular tax of $82,790 — an incremental AMT liability of $10,140 payable with the return. The crossover point is reached at approximately 1,430 shares; exercises below that threshold carry no additional AMT this year. A qualifying disposition converts the entire $116,000 spread to long-term capital gain and recovers the AMT credit, improving the after-tax outcome by $25,452 relative to a same-day sale.
Exercise 1,430 shares before year-end to capture the available AMT headroom without triggering additional tax, then exercise the remaining 570 shares in January so the preference item falls into the following tax year. Hold the exercised shares through the qualifying-disposition date, set aside $14,140 for the exercise price and the April payment, and update Q4 estimated taxes. Reassess if the concentrated position exceeds 15% of investable net worth or if a liquidity need arises before the holding period is satisfied.
Confirm plan-document exercise windows and blackout periods, coordinate the AMT estimate with the client's CPA, calendar the two-year and one-year holding dates, and schedule a review 30 days before the January tranche.
Illustrative output using sample figures. Educational content, not tax or investment advice.
Join the early list. You'll be the first to know when the tool is live, and you'll get the Equity Playbook as a head start.
Sign up freeJoin advisors who get equity comp planning insights, deadline reminders, and the downloadable Equity Playbook.
Sign up free