AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
Negative AMT adjustment and capital loss
Posted by: rtruely, February 13, 2015 12:12AM
Is it allowable to report a -$3000 adjustment to AMT income in the same year as a -$3000 loss was incurred from the regular tax schedule D?

I have regular tax schedule D which has an overall loss which results in the full -$3000 offset to my 1040 income.

In the same year I also have incurred a large negative AMT adjustment due to stock being sold which had a large AMT cost basis.

I'm unclear whether the AMT limit for negative adjustments applies separately from the -$3000 limit for regular capital gains.

Thanks - Rich

Re: Negative AMT adjustment and capital loss
Posted by: triad, February 14, 2015 10:53PM
You have to two schedule Ds each year. One for the 1040 and one for the AMT version. If both show (3000), you can't claim anything on the 6251. If the 1040 schedule D shows (3000) and the AMT version shows 0, yes, you could subtract the $3000, but that sounds unlikely.

By the way, when you fill out the 6251 with a sale of an asset with a dual basis, the adjustment is line 17, not line 14.

Re: Negative AMT adjustment and capital loss
Posted by: Kaye Thomas, February 15, 2015 07:40PM
Realistically, if the forms are properly prepared you will not have an AMT adjustment for capital gain or loss in a year in which you have a $3,000 loss for purposes of regular income tax. The difference will be that you have a greater capital loss carryover for purposes of AMT than for regular income tax purposes, and this difference in carryovers creates the possibility of a favorable AMT adjustment in a later year.

Kaye Thomas
Fairmark.com



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