Does the existance of capital gains from a Starker 1031 tax free exchange trigger the Alternate Minimum Tax, even when other capital gain losses exist to offset it? Specifically: I own commercial real estate in Rhode Island that I am planning to exchange for other residential property this year using a 1031 tax free exchange. However, there will be some boot left over from the commercial property exchanged (i.e., just to make it clear, the commercial property I'm exchanging is worth $2 million while the residential property I'm acquiring is worth $1.5M, leaving $500k left over in boot). I have stock losses from the dot-com days to cover the boot (in the above example, I have $600k in stock capital gain long term carryover losses). However, I've been told that even though I have long-term capital gain losses, and by my reckoning will owe no tax, the $500k boot will trigger the AMT, which requires a tax be paid. Is this true? By way of further clarification my income is just under the AMT limit at the moment, but with the addition of the $500k boot I will of course be over the limit. I am married with dependants, if that matters. A cite of the relevant code or a web link is ideal, but any answers are appreciated, even without citation. Thank you.
Francois Appert