Suppose I exercise 10k stock options for $1/share, and fair-market value is $2/share.
Normally, taxes are deferred until when I sell them. And when I sell, the basis for capital gains is $1/share.
But suppose the exercise causes me to pay AMT instead. AMT considers the $1 -> $2 to be taxable income.
When I pay for the exercise this year with AMT, what is the basis for my capital gains in the future? Do I pay for the $1 -> $2 increase twice? Are there any other ways that AMT affects future tax years?