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Level 2
April 28, 2022
Question

ISO that were sold but already paid AMT tax

  • April 28, 2022
  • 1 reply
  • 18 views

A client sold some ISO's but already paid AMT tax on them in a prior year.  How do I enter the sale so that the AMT basis is correct and possibly trigger the AMT credit.

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1 reply

Accountant-Man
Level 13
April 29, 2022

You need to increase the basis for the sake for AMT purposes only. There is a line for this adjustment on 6251, adjusted gain. Enter the amount as a negative.

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loricpa100
Level 5
February 23, 2023

This is the preferred method vs input a <negative preference> on the 6251 form?  Same outcome, yet with a worksheet...