AMT Not Offsetting Long Term Capital Gains With Losses on Form 6251

You are not giving us all the facts we need to solve your problem. But if you have an AMT loss of over $3,000 it is limited to $3,000 also and you should then get 0 on line 16 of 6251. You can't have a positive LTCG for AMT purposes, with a negative regular tax LTCG, and your AMT LTCG would virtually always be less than your regular LTCG. The evidence is that your 6251 line 16 must be negative or 0. You have entered something wrong. Read the instructions on lline 31 of 6251 and I doubt you would be using Part III unless you have Quaified DIvidends, but that wouldn't cause your problem..

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The only capital gains and losses are stock related and there are no ISO options. I do have a small amount of qualified dividends which is causing me to go to Part III of Form 6251. I think the real source of the discrepancy is in the LTCG section of Part III (Line 37B) where Turbo Tax should use the value from Line 15 of Schedule D and it says it does do that (but it adjusts for AMT in various forms and worksheets). I fail to understand how Turbo Tax is arriving at this value. Also the same problem exists in Line 16 Worksheet G where the values is not the same as the real loss.

Should I safely override it so that Line 16 of form 6251 becomes 0 as there is no difference in LTCG between AMT and regular tax for my case?

No, you should take the issue up with Turbo tax customer support. You may be able to share more details with them than on this newsgroup. If you have indeed found a bug, you should ask them to pay you something, say $5000.

Also, can you look at the worksheets Turbotax creates?

You must have AMT adjustments on the items leading into line 15 and 16 you mention, Before you override anything I isugest you trace these items down and follow removeps-groups' suggestions. We can't really help you because we can' t see the same items you have entered somewhere that you can't find.

ed