The Crossover

Exercising can create tax without cash. There's a limit before it does.


The IRS computes your taxes under two systems and you pay whichever is higher. Exercising ISOs creates paper income that only the second system, the AMT, counts. You have a cushion before it owes anything, and the crossover is the share count where that cushion runs out. We find yours before you exercise a single share.

Estimated $0-Tax Exercise Limit · Tax Year 2026Sample data

15,294 shares

Exercise up to this many at $19.00 per share with an estimated $0 of additional tax.

Cash to exercise

$30,588

Sold to cover

1,610

Shares kept

13,684

Estimates from fictional sample data. Your actual crossover depends on income, filing status, state, deductions, prior exercises, and grant-level strike prices.
Your crossover is not a recommendation to exercise. It is one boundary within a larger decision.

Your crossover is not a recommendation to exercise. It's one boundary within a larger decision.

What You'd Keep · Same-Day SaleSample data

$3.57M

Gross proceeds

−$68K

Strike cost

−$1.28M

Estimated tax

$2.22M

Net after-tax

In a same-day exercise and sale, the bargain element is generally taxed as ordinary compensation income. Qualifying instead can change the outcome by six figures. The analysis quantifies both, plus partial sales from 20% to 100%.

The Liquidity Event

Selling into the event: what you'd actually keep.


If you exercise and sell as part of a tender offer, acquisition, or IPO, the full gain is taxed as ordinary income that year. The analysis maps the path from gross proceeds to net after-tax cash, shows how selling only part of the position can fund the taxes on the rest, and quantifies what holding to qualify would change.

Where We Fit

There is risk in exercising. There can be a cost to waiting.


Exercising ISOs means committing cash to company stock that may rise, fall, or stay illiquid. Waiting preserves flexibility, but it can delay important holding periods and reduce access to favorable tax treatment. We do not tell you whether the company is a good investment. We quantify what exercising now, gradually, or later would mean for your taxes and cash, because those choices have measurable value and expiration dates. Your financial advisor can help you weigh the investment risk, and together you decide with both sides of the picture.

The Deliverable

One example of what you'd get.


Every engagement produces a CPA-reviewed report built from your real grants, income, and filing status — crossover, liquidity, or several scenarios side by side, depending on what you're deciding. Below is a sample of the crossover report, so you can see the format before you share anything real.

Common questions


What exactly is the AMT crossover?

Your federal taxes are computed under two systems, and you pay whichever is higher. Regular tax ignores an ISO exercise; the AMT counts the paper gain the day you exercise. Because regular tax starts out higher, there's a cushion of paper income you can absorb at $0 additional tax. The crossover is the share count where that cushion runs out.

A liquidity event is 60 days away. Is it too late to plan?

No, but the earlier the better. Even inside a short window there are real choices: how much to sell, whether previously exercised lots qualify for long-term treatment, whether a partial sale funds the taxes on the rest, and what to do before year-end. The analysis puts numbers on each.

Are the numbers on this page real?

They're estimates built from fully fictional sample data, so you can explore the format without sharing anything. Your actual report is built from your real grants, vesting schedule, income, filing status, and state after a secure intake, then reviewed by a CPA.

Do you cover RSUs and NSOs, or just ISOs?

The analysis is built around incentive stock options, where AMT and disposition timing matter most. If you also hold NSOs, RSUs, ESPP shares, or founder stock, we cover those in your planning session and in any ongoing multi-year work.

Do you provide custom or multi-year planning?

Yes, multi-year planning is often where the real value is. We track the AMT credit generated by prior exercises, space future exercises to manage bracket creep, and structure 10b5-1 trading plans for insiders who need a predetermined sale schedule. If QSBS or an 83(b) election applies to your situation, we model those as part of the same engagement.

Whatever you're deciding, start with the number.

A 30-minute conversation is enough to know what you actually need. No pressure, no jargon, just a clear read on your situation.

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