American military thought has coined the expression 'Overall Strategic Objective.' When [British] officers first heard this they laughed; but later on its wisdom became apparent and accepted. Evidently this should be the rule, and other great business be set up in subordinate relationship to it.
The AMT was created in 1969 over outrage that 155 high-income households making over $200,000 at that time didn't end up owing any federal income tax. That $200,000 would be worth $1.3 million today.
The AMT adjustment has three consequences. First and most obviously, you may have to pay AMT in the year you exercise an incentive stock option. There's no way to determine the amount of AMT you'll pay simply by looking at the amount of the bargain element when you exercised your option.