An employee holds ISOs and is considering exercising them. Which of the following is a key tax planning consideration specific to ISOs?
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A
ISO gains are always taxed as ordinary income in the exercise year
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B
The spread at exercise may trigger the Alternative Minimum Tax (AMT)
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C
ISO exercises must be reported on Form W-2 regardless of sale date
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D
ISO options lose their preferential tax treatment if held more than 5 years