AMT and Equity Compensation
Alternative minimum tax, nonqualified stock options, incentive stock options and other forms of equity compensation.
AMT and Capital Gains
Posted by: astax, December 22, 2017 07:01PM
I have a situation where it appears that deducting more property tax (and also state and local tax) this year causes the tax liability to go down even though the return is in AMT. Most of the income is from capital gains. Can anyone explain what might be causing that? The AMT exemption is partially phased out.

Re: AMT and Capital Gains
Posted by: wanttoknow, January 10, 2018 10:05PM
The tax on qualified income is determined based on a calculation for the regular tax, which takes into account state and local tax--even though you must file form 6251.

If you are using software, this won't be apparent.

If you do not use software, form 6251 would force you to fill out the "Qualified Dividends and Capital Gain Tax" worksheet, which is part of the 1040 written instructions.

Once the tax on qualified income is determined, that gets plugged into Form 6251.

Re: AMT and Capital Gains
Posted by: astax, January 13, 2018 06:58PM
Thank you very much for your response.

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