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
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.
Some are (like charitable contributions), some aren't (like state and local income tax and property taxes).
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
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
All of this is presuming your question arrises due to selling some ISO options you were granted and exercised over a year ago. ed
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