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Posted by ed on February 6, 2007, 9:20 pm
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> I have some questions on how to calculate AMT 6251, line 16.
>
> Assume no form 4797, no form 4684, no ISOs. Assume in 2005 a
> salary of $50K. And a LT cap loss of $103K (from sale of
> stock), no cap gains, no ST loss. So, 2005 uses up only $3K
> of that cap loss, and $100K LT loss is carried forward to
> 2006.
>
> For 2006, assume a salary of $50K. And, in 2006 assume a LT
> cap gain of $100K (from sale of stock), no ST gain, no cap
> loss. The sch D for 2006 uses the $100K carryover to reduce
> the 2006 net cap gain to $0K.
>
> Ok, that is all clear to me. This is where it gets fuzzy.
> 6251, line 16 says to "refigure Sch D for the AMT", and
> "fill out an AMT Capital Loss Carryover Worksheet in the Sch
> D instructions".
>
> I cannot find the "AMT Capital Loss Carryover Worksheet in
> the Sch D instructions". I suspect that they meant use the
> "Capital Loss Carryover Worksheet in the Sch D
> instructions", using AMT adjustments. Right?
>
> In this example, there are no AMT adjustments (I believe),
> so the AMT cap loss carryover is the same as the regular cap
> loss carryover? Is that right?
>
> And, when you "refigure Sch D for the AMT", you refigure Sch
> D using the AMT cap loss carryover? And, since the Sch D had
> no AMT adjustments, the AMT net cap gain is $0K. And, the
> result is that line 16, 6251 is $0K, correct?
>
> Is there a .gov document that explains clearly how to
> calculate line 16?
You don't need to calulate line 16 because none of your
LTCGs are AMT. Line 16 is to show the difference if it WAS
AMT, which is Zero, so put 0 on line 16 (or leave it blank).
There is also no AMT Cpital Loss Carryover so you don't
need the form.
ed
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