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Subject Author Date
AMT and capital gains, qualified dividends. dkappad 12-02-2006
Posted by dkappad on December 2, 2006, 8:22 pm
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 I am trying to work through the AMT.

Firstly, form 6251 often says to find the difference between
regular tax and AMT. How do I figure the AMT (especially
for line 16 - the intructions say to use "Schedule D for
AMT" which I cannot find)?

Also, are itemized deductions (charitable donations) still
deducted from AMT taxable income (can I give away enough
money so that I don't hit the AMT)?

Thanks

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Posted by Rich Carreiro on December 3, 2006, 4:05 pm
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> I am trying to work through the AMT.
>
> Firstly, form 6251 often says to find the difference between
> regular tax and AMT. How do I figure the AMT (especially
> for line 16 - the intructions say to use "Schedule D for
> AMT" which I cannot find)?

Print out another blank Sched D. Write the words "for AMT"
at the top of it, and fill it out. Then keep it for your
records.

> Also, are itemized deductions (charitable donations) still
> deducted from AMT taxable income (can I give away enough
> money so that I don't hit the AMT)?

Some are (like charitable contributions), some aren't (like
state and local income tax and property taxes).

--
Rich Carreiro rlcarr@animato.arlington.ma.us

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Arthur Kamlet on December 3, 2006, 4:05 pm
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> I am trying to work through the AMT.
>
> Firstly, form 6251 often says to find the difference between
> regular tax and AMT. How do I figure the AMT (especially
> for line 16 - the intructions say to use "Schedule D for
> AMT" which I cannot find)?

An AMT Schedule D looks just like a Schedule D for regular
income tax, except you write AMT on the top and you use the
cost basis that applies for AMT instead of for regular
income tax.

For example, if you exercised ISOs and declared the Bargain
Element Amount (the difference between the stock's market
price upon exercise and the exercise price) as AMT income
but not as income for regular income tax, then when you sold
the stock without a disqualifying disposition, you use the
exercise price as cost basis for regular income tax and you
use the exercise price plus Bargain Element as cost basis
for AMT.

In this way, the two Schedules D produce different results.

If in your situation, there is no difference between your
schedule D for ordinary income and for AMT, there's no need
to attach an AMT Sch D, since they would both be the same.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by ed on December 4, 2006, 5:57 pm
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Arthur Kamlet wrote:

> I am trying to work through the AMT.

>> Firstly, form 6251 often says to find the difference between
>> regular tax and AMT. How do I figure the AMT (especially
>> for line 16 - the intructions say to use "Schedule D for
>> AMT" which I cannot find)?

All of this is presuming your question arrises due to
selling some ISO options you were granted and exercised over
a year ago.

ed

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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