AMT Not Offsetting Long Term Capital Gains With Losses on Fo

sharad.sogani · Joined: 27 Feb 2008 Posts: 1

I fall in the highest income tax bracket and have noticed that my
long term capital gains and losses net to a loss of $9000 under the
regular rules. So, in the 1040 I have a net loss of $3000 (maximum
allowed) and the rest should be carried over. However, in form 6251, I
am noticing that these are not offsetting and I show a net gain of
$5000. So, I am being subject to an extra tax on $5000 + $3000 using
AMT. Worse yet, it appears that my original loss of $9000 cannot be
carried over. I

Is my analysis correct or do I need to override the numbers on Form
6251 to have the same long term loss of $3000.

I have already done an extensive search and cannot find a conclusive
answer.

Thanks.

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Archived from group: misc>taxes>moderated

ed · Joined: 25 Aug 2007 Posts: 95

On Feb 27, 1:29 pm, sharad.sog...@gmail.com wrote:
> I fall in the highest income tax bracket and have noticed that my
> long term capital gains and losses net to a loss of $9000 under the
> regular rules. So, in the 1040 I have a net loss of $3000 (maximum
> allowed) and the rest should be carried over. However, in form 6251, I
> am noticing that these are not offsetting and I show a net gain of
> $5000. So, I am being subject to an extra tax on $5000 + $3000 using
> AMT. Worse yet, it appears that my original loss of $9000 cannot be
> carried over. I
>
> Is my analysis correct or do I need to override the numbers on Form
> 6251 to have the same long term loss of $3000.
>
> I have already done an extensive search and cannot find a conclusive
> answer.
>
> Thanks.
>
> --
> >
> >
> >
> >
> >
> >
> >
> >
> >
> >
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..

ed

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