--- title: "Incentive Stock Options (ISO): Solve for Max and Max Before Prior Year AMT Credit Phaseout" description: ISO exercises aren't taxable under the standard calculation, but they are a preference item for Alternative Minimum Tax (AMT). Use the "ISO Solve for Max" feature to keep your clients out of AMT or preserve a prior year AMT credit. --- [Skip to content](https://help.holistiplan.com/incentive-stock-options-solve-for-max-and-amt#main-content) English Show submenu for translations [More support](https://help.holistiplan.com/kb-tickets/new?hsLang=en) [![Holistiplan Logo (800x200 px).webp\]](https://help.holistiplan.com/hs-fs/hubfs/Holistiplan%20Logo%20(800x200%20px).webp?width=160&height=40&name=Holistiplan%20Logo%20(800x200%20px).webp)](https://www.holistiplan.com/) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.holistiplan.com/kb-tickets/new) Holistiplan Knowledge Base - There are no suggestions because the search field is empty. 1. [Help Center](https://help.holistiplan.com/?hsLang=en) 2. [Scenario Analysis](https://help.holistiplan.com/scenario-analysis?hsLang=en) 3. [Equity Compensation](https://help.holistiplan.com/scenario-analysis?hsLang=en#equity-compensation) # Incentive Stock Options (ISO): Solve for Max and Max Before Prior Year AMT Credit Phaseout ## ISO exercises aren't taxable under the standard tax calculation, but they are a preference item for Alternative Minimum Tax (AMT). Use the ISO Solve for Max feature to keep clients out of AMT or preserve a prior year AMT credit. Unlike Non-qualified stock options, the exercise of an Incentive Stock Option is not a taxable event. But the bargain element (i.e., the difference between the market price and the strike price, multiplied by the number of shares) *is* a preference item for Alternative Minimum Tax (AMT), which gets reported on row 2i. ![](https://help.holistiplan.com/hs-fs/hubfs/Screenshot%202026-02-06%20at%2012-28-57%E2%80%AFPM-png.png?width=443&height=467&name=Screenshot%202026-02-06%20at%2012-28-57%E2%80%AFPM-png.png) Accordingly, exercising ISOs may ultimately increase a client's tax bill due to triggering AMT. Within Holistiplan, users can determine the dollar amount of ISO bargain element that a client can realize *before* triggering AMT. Click the gear icon underneath the data field in **Row 2i**, and Holistiplan will calculate that amount.  ![](https://help.holistiplan.com/hs-fs/hubfs/Screenshot%202026-02-06%20at%2012-35-04%E2%80%AFPM-png.png?width=424&height=447&name=Screenshot%202026-02-06%20at%2012-35-04%E2%80%AFPM-png.png) ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Apr-23-2026-02-02-03-0694-PM.png?width=584&height=165&name=image-png-Apr-23-2026-02-02-03-0694-PM.png) If a scenario includes any amount in the **Available Credit for Prior Year AMT**  field in the Nonrefundable Tax Credits section, Holistiplan will also show the maximum ISO income that can be realized before that credit begins to phase out. More on that credit can be found [here.](https://help.holistiplan.com/amt-credit?hsLang=en) Users can visualize the **ISO Solve for Max** (for both the credit phase-out and the triggering of AMT) in Range Calc. Click on the ellipsis (...) icon at the top of the scenario in question and select [Range Calc](https://help.holistiplan.com/what-is-range-calc?hsLang=en). in Range Calc, click the **Advanced Settings** link shown below, then select **Incentive Stock Options (beta)** as the type of income option. The result will look similar to the example below. ![](https://help.holistiplan.com/hs-fs/hubfs/Screenshot%202026-02-06%20at%2012-42-20%E2%80%AFPM-png.png?width=670&height=301&name=Screenshot%202026-02-06%20at%2012-42-20%E2%80%AFPM-png.png) ![](https://help.holistiplan.com/hs-fs/hubfs/image-png-Feb-06-2026-05-44-35-8005-PM.png?width=670&height=260&name=image-png-Feb-06-2026-05-44-35-8005-PM.png) - [Getting Started at Holistiplan - 101](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#main-content) - [How to Contact Support](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#how-to-contact-support) - [Ready to Get Started?](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#ready-to-get-started) - [Getting Started with Your Households](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#getting-started-with-your-households) - [Tax Report](https://help.holistiplan.com/getting-started-at-holistiplan-101?hsLang=en#tax-report) - 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