AMT disposition of property loss with ordinary loss

The instructions for AMT line 17 (disposition of property) state "If you have a capital loss after refiguring Schedule D for the AMT, apply the $3,000 capital loss limitation separately to the AMT loss. "

On my regular schedule D I have a total capital loss exceeding $3000, so I'll be taking the maximum $3000 deduction against my ordinary income.

Due to selling some stock with a large AMT tax basis I have an even larger loss on my refigured Schedule D for AMT which will require a total negative adjustment of $10K to my AMT.

Based on the instruction of line 17 it seems to me that I can take the -$3000 loss on the 1040 due to my regular schedule D AND also make a -$3000 adjustment on line 17 of my AMT .

Is that correct?

Thanks - Rich

Reply to
rtruely007
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I would say not.

If the capital loss and the AMT capital loss both exceed $3000, then there is no adjustment.

Reply to
Arthur Rubin

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