Reply To: How to use AMT Credit

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#5458
gighi
Participant

I am in a similar position with a 6 figure AMT credit and haven’t found too many obvious ways. It all boils down to increasing your taxable income so the spread with AMT is increased.

These are some ways I have used over the years:

– Get a new job that pays much more W2 income 🙂

– Sell exercised shares: adjusting the cost basis for AMT purposes typically substantially increases the AMT vs regular tax spread and the amount of credits one can use, though it can be a double edged sword because large long term capital gains will eat all your AMT deduction…

– Do an exercise-and-sale of some other options you weren’t going to exercise anyway, if you have the possibility of doing so: this will heavily bump your w2 income for the year due to the disqualifying disposition, so you should be seeing a larger than usual spread

Unfortunately, nothing of substance, but I am definitely following this thread.