Hi,
My team pulled a list of people who receive employer equity (RSUs, ISOs, NSOs, ESPP, or startup shares). Yours is a situation where timing decisions this year can move real money, so I wanted to flag what changed for 2026 and offer a structured way to get ahead of it.
What changed for 2026:
- AMT got sharper for higher earners. The 2025 tax law kept the larger AMT exemptions ($90,100 single, $140,200 married filing jointly) but cut the phase-out thresholds to $500,000 single and $1,000,000 joint and doubled how fast the exemption disappears. The practical result: the same ISO exercise that was comfortable in 2025 can trigger a materially larger AMT bill in 2026 once your income climbs.
- QSBS expanded for newer startup stock. For shares issued after July 4, 2025, you no longer need a full five years for a partial exclusion (50% at three years, 75% at four, 100% at five), the per-issuer cap rose to $15M, and the company-size limit rose to $75M. Stock issued on or before that date keeps the old five-year rules, so which batch you hold changes the math.
Why this matters to you:
- Selling or exercising at the wrong time can trigger more tax and AMT than you expected.
- Small adjustments to grant, vest, and sale timing can materially improve your after-tax value.
Looking at this changes we came up with an Equity Review solution that puts the tax side and the wealth side under one roof:
- Tax projection: a full-year projection of your equity income, AMT exposure, and estimated payments, so there are no April surprises.
- Scenario modeling: hold vs sell vs staged selling, net after tax, with an AMT check on ISO exercises and an 83(b) review where relevant.
- Written investment review: a written report on your equity position from our CFP department covering concentration risk, diversification, and how the equity fits your broader plan.
- Consultation: with our tax strategist and with our CFP at the same meeting, so the tax move and the investment move are coordinated rather than made in isolation.
- 90-day action map: vesting dates, blackout windows, a withholding tune-up, and estimated tax needs laid out so nothing slips.
Why now matters: The back half of the year is when equity timing decisions actually get made, and the deadlines are coming up fast. Booking early in the middle of the year means we can model scenarios while there is still time to act on them.
Please note that we have limited availability as we can only serve so many clients, reply to this email by Friday this week and we will set up a free 15-minute call to scope it, since our calendar fills quickly heading into the fall.
Sincerely,
—
George Dimov, CPA
Licensed and Insured
(833) 829-1120 toll free
(212) 994-8081 Fax
www.dimovtax.com