Drake Tax - Form 3921 - Excise of An Incentive Stock Option

In Drake Tax, there is no specific data entry screen for Form 3921. A preparer must determine if an entry is needed based on the facts of the transfer. For regular tax purposes, Form 3921 is generally informational and the document should be retained for record keeping purposes.

If stock acquired through an ISO is sold or otherwise disposed of, the information on Form 3921 may be used to figure the basis for the gain or loss of the sale or disposition. If the taxpayer is subject to AMT, an entry in the 6251 screen > field 2iExercise of incentive stock options, may be necessary. Review field help and the 6251 Instructions before making an entry.

See the following for more information:

• Form 3921 Instructions for Employee

• Publication 525, Taxable and Nontaxable Income

• Form 6251, Alternative Minimum Tax - Individuals

• Form 6251 Instructions