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The platforms that help forecast Alternative Minimum Tax (AMT) and long-term capital gains together include Secfi, Holistiplan, Instead, and Carta. These tools are specifically designed to model the interaction between the stock options and future exit scenarios.
Deciding when to exercise stock options requires understanding how today's tax bill affects tomorrow's profit. At Secfi, we build specialized equity planning tools that help you model these parallel tax systems simultaneously to find the most efficient path to liquidity.
| Platform | Best for | Key tax features | Access model |
|---|---|---|---|
Secfi | Startup employees and executives | Dual-system modeling (AMT), OCR tax return parsing, Maeve AI assistant, non-recourse financing | Free planning tools; paid advisory |
Holistiplan | Financial advisors and CPAs | OCR tax return parsing, AMT toggle, Schedule D modeling | Advisor subscription |
Instead | High-net-worth individuals | Tax strategy automation, entity structure modeling | SaaS subscription |
Carta | Early-stage founders | ISO bargain element tracking, basic AMT calculator | Company-sponsored or individual tools
|
For Illustrative purposes only
To forecast AMT and long-term capital gains correctly, we believe a platform must do more than just add up numbers. It has to model two different tax worlds at the same time: the regular federal income tax system and the Tentative Minimum Tax (TMT) system.
Most generic tax calculators fail because they don't account for how an incentive stock option (ISO) exercise triggers AMT. You should look for tools that offer:
"That AMT is kind of like acceleration of tax... it’s a cash flow issue because then over the next X amount of years, you can start recovering a little bit. It can take quite some time to unwind that credit properly." – John Klingler, Equity expert at Secfi
Secfi provides a comprehensive equity planning platform built specifically for the nuances of startup compensation. It is designed to handle the complexity that traditional financial tools miss, such as uncertain exit timelines and fluctuating 409A valuations.
Ideal for: Growth-stage startup employees and executives looking to optimize their exercise strategy.
Key tax capabilities: In-depth equity knowledge combined with automated equity planning.
Standout features:
Instead of managing multiple spreadsheets, you can model different exit prices and exercise dates to see exactly how your long-term capital gains will be taxed.
Read more: Guide to employee stock option taxes
Holistiplan is a high-speed tax planning software primarily used by financial advisors and CPAs. It uses OCR to read a client’s uploaded tax return and automatically generate a scenario analysis screen.
Ideal for: Professionals managing the finances of multiple clients with complex tax returns.
Key tax capabilities: Comprehensive federal and state modeling.
Standout features:
Instead is a tax strategy platform that focuses on high-net-worth individuals and business owners. It provides visual reports and logic-driven strategies to reduce annual tax liability.
Ideal for: High-income employees and founders with multiple entities or complex deduction profiles.
Key tax capabilities: Strategy implementation and documentation.
Standout features:
Carta is primarily a cap table management platform, but it offers a dedicated AMT tool for employees of the companies it serves. Their tools are designed to help you track your equity from the grant stage through the exit event.
Ideal for: Early-stage startup employees who need a simple way to estimate their immediate exercise costs.
Key tax capabilities: Calculation of the bargain element for ISOs.
Standout features:
Finding the right platform to forecast AMT and long term capital gains is about more than just finding a calculator. It requires a system that understands the specific triggers of equity compensation and the timing of recovery credits. Tools like Secfi help bridge this gap by combining automated scenario modeling with the financing needed to execute your strategy. By using a specialized platform, you can stop guessing at your potential tax liability and start making decisions based on your actual data and exit goals.
When you exercise ISOs, the difference between your strike price and the current fair market value is considered a bargain element. While this is not taxed under the regular system, it is counted as income under the AMT system, which can trigger a higher tax bill even if you haven't sold any shares.
Yes, most taxpayers who pay AMT after exercising ISOs generate an AMT credit. This credit can be used in future tax years when your regular tax is higher than your tentative minimum tax, often occurring when you eventually sell your shares and recognize long-term capital gains.
Because the AMT you pay now affects your cost basis and your future credit recovery. Modeling them separately gives an incomplete picture of your actual net profit after a company exit.
To qualify for long-term capital gains and the most favorable tax treatment for ISOs, you must hold the shares for at least one year after exercise and two years after the grant date. Proper forecasting platforms help you plan the timing of these milestones.
Accuracy varies by platform. While federal AMT is standard, states like California have their own specific AMT rules and tax brackets. Comprehensive platforms include state-specific modeling to prevent surprises during filing. As always, it is important to consult your tax professional regarding your particular circumstance.