Case Study

How we helped a rising corporate executive coordinate RSU vesting, NQSO exercises and ISO exercises as part of a multi-year plan to minimize income tax and AMT exposure while reducing concentrated stock risk.

Objectives

Build one coordinated strategy across RSUs, NQSOs and ISOs, not managed in isolation
Reduce concentrated stock exposure as equity continues to vest
Identify maximum ISO exercise with no incremental AMT
Raise liquidity to fund diversification and long-term goals

Process

LTax Team: modeled regular tax, AMT/TMT and after-tax liquidity across sequencing scenarios
Wealth Planning Team: built the baseline financial plan behind every decision
Estate & Trust Team: evaluated trusts to cut future estate exposure and fund the children’s trusts

Strategy

Modeled 2026 RSU vesting and NQSO exercise to find the ISO “AMT crossover point”
Exercised ISOs up to crossover at no incremental AMT cost
Sold a targeted portion of NQSOs immediately; sell-to-cover on the remainder
Funded a Donor Advised Fund; evaluating a Qualified Opportunity Fund for 2027
Set a repeatable, multiyear cadence for future vesting and exercise decisions

Results

Client has structure and process around decision-making for exercised options and remaining ISOs. Funding of retirement and financial plan has been initiated. Portfolio risk has been significantly reduced.

Estimated tax savings: $437,179.00

Client now has a repeatable, multiyear framework for RSU vesting, option exercises and remaining ISOs. Concentration risk is sharply reduced, the full ISO AMT crossover was captured at no incremental federal cost, and QOF funding is in planning for early 2027.

Potential tax savings: $612,480

LTax is a boutique tax firm emphasizing personalization, communication, and
initiative-taking responsiveness.

We take a consulting approach to tax preparation and planning, ensuring regular client communication and a personalized understanding of our clients’ needs. We tirelessly research tax mitigation strategies and develop actionable recommendations for the benefit of our clients.

Our Solutions

Adam Raschke, JD

Director, Tax Practice Lead

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