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Questions tagged [alternative-minimum-tax]

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2
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1answer
53 views

ISO exercise limit before triggering AMT

With recent 2018 changes to AMT, I wanted to understand how much ISO options can I exercise without making a material difference in AMT Scenario Current income 200k Claiming standard deduction for ...
1
vote
1answer
35 views

What is earned income from the 2016 Exemptions Worksheet

I'm working through my federal 1040 and form 6251. For line 29 on form 6251, there's a worksheet in the instructions (pg 10) that asks for earned income on line 8. Since line 2 of that worksheet asks ...
4
votes
1answer
138 views

Purchase Stock but cannot pay AMT

I was released by my company and I had to purchase my ISO's within 60 days of leaving the company or lose them. The issue is to purchase them would mean around a $1.2m AMT & State Tax Bill next ...
1
vote
1answer
44 views

AMT credit against regular tax

I live in California. After having paid AMT for the last few years, this is the first year when my regular taxes are higher than AMT. This seems to mean I have accrued AMT credit over the last few ...
0
votes
3answers
85 views

Do I need to calculate Alternative minimum tax?

I am a full-time employee at an organization. For the past two years, my financial case is incredibly straight forward. (1) For 2017 as well as 2018, I was single with no dependants. (2) I took the ...
0
votes
0answers
13 views

Does AMT for incentive stock option exercise affect cost basis? [duplicate]

Suppose I exercise some options from an ISO grant and doing so triggers AMT. Does the fact that I paid taxes on the bargain element of the option affect the cost basis of the stock or is the basis ...
2
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0answers
29 views

Tax Basis and Bargain Element for Incentive Stock Option on Foreign Stock Exchange

The US company I work for recently went public, however the powers that be chose to do the IPO on the Australian Stock Exchange (ASX). I am based in the United States. My stock option strike price ...
3
votes
3answers
115 views

How to know FMV of ISOs?

I'm researching when is best to purchase ISOs I've been vesting at a private venture-backed startup. My understanding is that when I exercise, AMT will trigger and I will have to pay those taxes based ...
2
votes
2answers
186 views

Does AMT affect cost basis of future capital gains?

Suppose I exercise 10k stock options for $1/share, and fair-market value is $2/share. Normally, taxes are deferred until when I sell them. And when I sell, the basis for capital gains is $1/share. ...
1
vote
1answer
70 views

AMT Tax on Company Stock Options

I must exercise approx. $100k in company stock options in the 1Q19 as they are expiring. My estimated 2019 income is $235k. Any advice on minimizing AMT tax of 28% on the est. $175k in profit when I ...
4
votes
0answers
270 views

How does one calculate their AMT MAGI to determine their passive activity loss limitation?

The instructions for line 19 (passive activities) of Form 6251 (Alternative Minimum Tax) mention that you may need to do an AMT version of Form 8582 (Passive Activity Loss Limitations): Refigure ...
4
votes
1answer
179 views

Should my regular income tax unallowed prior year passive activity loss carry over to the AMT passive activity loss calculation?

This is a pretty esoteric question but worth a shot. I have a rental property. In 2015 I had an unallowed loss. In 2016 I exercised incentive stock options which resulted a higher alternative minimum ...
4
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1answer
2k views

2017 state tax refunds and AMT

If my 2017 state tax deductions are reduced by alternative minimum tax, does the state tax refund become taxable income in 2018?
-3
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2answers
69 views

Incentive Stock Option (ISO) tax question - more specific this time

Here's the scenario: I live and work in New York City. On November 1, 2017 I get granted 80,000 ISO's that vest over four years (with a one year cliff). The strike price is $3. On November 1, 2018 ...
0
votes
1answer
181 views

Do we always get back AMT money for stock options?

I'm thinking of early exercising my stock options. One of the reasons is that I won't have to pay alternative minimum tax (AMT) now (strike price is equal to fair market value). But from what I ...
0
votes
1answer
412 views

Do people who have no income (living off savings) pay AMT? [duplicate]

Retired people who are living off their savings may have no income. Or what income they have might easily be offset by charitable giving. Do such people still have to pay some kind of "alternative ...
3
votes
1answer
924 views

What is the total underpayment penalty for not paying AMT immediately?

I exercised options (ISOs) in a startup so I'll have to pay the alternative minimum tax (AMT). The amount is greater than $1000. (EDIT: the AMT will certainly be larger than my regular income) What ...
3
votes
1answer
129 views

Is there anything to do immediately after exercising stock options?

I'm at a startup and I just exercised my incentive stock options. I believe I'll need to pay the alternative minimum tax (AMT). Is there anything to be done this year or should I wait until tax ...
4
votes
1answer
212 views

Do high premium health plans make sense for those self-employed AND subject to the AMT?

As you may have guessed, I am self-employed and subject to the AMT. When evaluating health insurance plans for my family, I chose a high premium/low deductible plan so that I could take advantage of ...
3
votes
1answer
87 views

Will I lose the AMT tax I paid if my startup fails?

I recently parted ways with a startup. I was granted options and now must exercise them. When I exercise them, I will incur the Alternative Minimum Tax (AMT). If the company fails and goes bankrupt,...
1
vote
0answers
1k views

How do you calculate your “alternative tax net operating loss”?

In 2013 I had gains from trading futures (Section 1256 contracts) and then in 2014 I had losses trading futures. A few months ago I amended my 2013 tax return to claim a refund via a futures loss ...
3
votes
1answer
173 views

What strategies are there for minimizing AMT?

AMT can cause an effective 35% marginal tax rate for certain income ranges. Incidentally, the income ranges where this happens can be far below the usual ($411k MFJ) non-AMT income required for that ...
3
votes
1answer
100 views

Should I early exercise unvested ISOs when the FMV is above the strike price?

I have unvested ISOs from a job I started this year, and recent revisions to our policies have given employees the ability to early-exercise their options. However, it's been several months since my ...
3
votes
2answers
1k views

Does the IRS penalize for overpaying and underpaying state income tax?

I used TurboTax for filing my taxes this year (for 2014) and came across an oddity that either means TurboTax is buggy or the IRS penalizes for overpaying state income tax. When using turbotax (and ...
2
votes
1answer
379 views

How to calculate and claim AMT credit

Suppose I am in California, and I want to try to roughly calculate the AMT i would owe as well as how much i can get back each year for ISO that i plan to hold for many years. Am i doing this right? ...
5
votes
2answers
204 views

Will anything happen to me if the AMT is not re-established before 2011?

Who will be effected if congress does not renew the limit raise on the AMT by the end of the year? Will this change how much will be owed for 2010, and due in April 2011?
10
votes
2answers
521 views

What is Alternative Minimum Tax (AMT) and how does AMT get calculated? [U.S.]

What is Alternative Minimum Tax (AMT) in the U.S.? How does Alternative Minimum Tax get calculated? What conditions are likely to trigger an AMT assessment versus a regular tax assessment? Are ...