AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
AMT Carryover Usage
Posted by: Turzar, March 2, 2015 06:12PM
I have an AMT Long-term capital loss carryover from the sale of ISO stock in the past. This carryover is $153,000 and is shown on Line 13b of the Carryover Worksheet. This amount is transferred to Line 17 of my 6251 to reduce my Alternative Minimum Taxable Income. The issue I have is that I only need $93,000 of this carryover to reduce my AMT Tax to $0, but the full $153,000 is being used on Line 17 and my carryforward to future years is then $0. Can I just change Line 17 to only use $93,000 of this carryover amount so that $60,000 is a carryforward to future years to reduce my Alternative Minimum Taxable Income in future years? Otherwise, I will lose the full benefit of this carryover by reporting all of it in this year when I do not need all of it to reduce my AMT Tax to $0 in this year.

Re: AMT Carryover Usage
Posted by: triad, March 5, 2015 08:58PM
No such option.

By the way, are you sure the software is doing the line 17 calculation correctly? Both versions of the schedule D (regular 1040 and AMT version) are capped at ($3000). If the 1040 schedule D is ($3000) and so is the 6251, line 17 is $0. If the 1040 schedule D is $20,000 and the 6251 one is ($3000), line 17 would be ($23,000).

Re: AMT Carryover Usage
Posted by: Kaye Thomas, March 10, 2015 02:43PM
That's correct. The amount you can carry over to the next year is determined in relation to the amount allowable, not the amount you claimed, so claiming a smaller amount would not permit you to preserve a carryover.

Kaye Thomas
Fairmark.com

Re: AMT Carryover Usage
Posted by: Turzar, March 28, 2015 08:39PM
triad - Thanks for the reply. For clarification, I do have capital gains of $163,000 so the -$153,000 amount on line 17 is the correct amount.

Kaye - Thanks for the reply. I was afraid that was the answer. It seems counterintuitive, but I guess that applies to many things with AMT.



Sorry, only registered users may post in this forum.