Line 2k AMT

Technical topics regarding tax preparation.
#1
Posts:
1
Joined:
24-Mar-2023 7:12pm
Location:
NY
Taxpayer exercised an ISO and reported an adjustment on their 6251 AMT 2021 tax return. It was subsequently sold in 2022. I need feedback on what to report as an adjustment on 6251 line 2k, disposition of property
 

#2
Posts:
1018
Joined:
10-Jun-2019 4:20pm
Location:
WESTERN USA
AMT gain/loss minus Regular gain/loss. Note loss in each is limited to $3000. When it works you shouldget a negative
number that allows more AMT CREDIT.
 

#3
BTJig  
Posts:
218
Joined:
29-Sep-2016 9:26am
Location:
Florida
You have a higher AMT basis in the stock that was sold, compared to your regular tax basis. As TaxMaster stated, that should result in a lower tentative minimum tax vs your regular tax, and your AMT credit will come into play. That "adjustment" should be that additional AMT basis you have in the ISO shares you sold. This all can go horribly wrong if the sales price of the ISO shares ends up being less than the FMV at the time of the ISO exercise. The MTC can get "stuck".
 


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