Questions tagged [alternative-minimum-tax]
The alternative-minimum-tax tag has no usage guidance.
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Why does the credit for prior year AMT exist?
The ways in which the US alternative minimum tax (AMT) differs from the regular tax fall into two components: excluded deductions (e.g., state taxes) and disallowed deferrals (e.g., exercising ISOs (...
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Would allowing my company to pay me less in order to donate that money to charity lead to net increase in charitable donations?
To give context for this question I first need to explain that I am lucky enough to make very good salary, and also live like I'm on minimum wage, which allows me to donate a pretty decent percentage ...
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AMT and Child Tax Credit
I'm trying to figure out at what point AMT might hurt me, because I just received from stock options from my employer and am considering the benefit of exercising. I worked through form 6251, but I ...
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Are nonresident aliens filing the 1040-NR eligible for the $72,900 AMT exemption?
Do non-resident aliens receive this exemption amount when filing our AMT taxes on form 6251? I want to make sure because I read here:
https://www.hhcpa.com/blogs/income-tax-accountants-cpa/amt-risk-...
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When paying AMT, might it make sense to take standard deduction even if it's more expensive?
Due to an ISO exercise, I must pay AMT this year. But this was a one-time thing: I will probably not need to pay AMT next year.
Since ISO exercises are considered a "deferral item", my ...
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AMT ISO deferrals for nonimmigrant. Sold shares after leaving US
I lived in the US from 2013 and 2016 on an E-3 nonimmigrant visa.
As part of my full-time employment contract, I was granted ISO shares in a pre-IPO company.
I exercised most of the vested shares in ...
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US Tax implications? Bought stock options, paid AMT, company acquired at a loss, options worthless
Scenario (numbers are for illustrative purposes only):
2017: I exercised options when I left my former employer (startup, not public).
Exercised 100% of 10,000 ISOs, common stock.
At a strike price of ...
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Dividing capital gains over 2 calendar years
I was reading through some investment brokerage literature and came across this caption
Long-term capital gains & AMT
Realizing a capital gain that's large in comparison to the rest of ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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.
...
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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 ...
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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 ...
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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 ...
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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?
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Incentive Stock Option (ISO) tax question
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 I'...
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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 ...
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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 ...
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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 ...
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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 ...
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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 ...
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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,...
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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 ...
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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 ...
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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 ...
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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 ...
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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?
...
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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?
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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 ...
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