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mlmpetert · 06-04-2008, 05:51 PM

Dont think capital losses affect AMT for your average capital gain/loss (stock or bond). Normal capital gains and losses allways get netted. If you have just losses you can only take 3k deduction per year but cary foward any remaining.

Ive allways been taught to think about it like a completely different tax. So if you calculate what your tax would be normally (skip that section of the 1040), and AMT wise and you just pay which everone is greatest. It makes people who are allowed certin dedutions under the normal tax code add things back.

Some AMT add backs for you schedule A'ers are Medical Expenses, Investment Interest, Charitable Deductions, Casualty Losses, Gambling Losses and Home Equity Loans.

The Standard deduction and Personal exzemption isnt allowed.

Preference items are tricky. If you have them odds are you are at the very high end of the scale the AMT affects, or have very low earned income.

06-04-2008, 05:51 PM	#7
mlmpetert Playmaker Join Date: Nov 2006 Location: Richmond Posts: 3,261	Re: Alternative Minimum Tax Dont think capital losses affect AMT for your average capital gain/loss (stock or bond). Normal capital gains and losses allways get netted. If you have just losses you can only take 3k deduction per year but cary foward any remaining. Ive allways been taught to think about it like a completely different tax. So if you calculate what your tax would be normally (skip that section of the 1040), and AMT wise and you just pay which everone is greatest. It makes people who are allowed certin dedutions under the normal tax code add things back. Some AMT add backs for you schedule A'ers are Medical Expenses, Investment Interest, Charitable Deductions, Casualty Losses, Gambling Losses and Home Equity Loans. The Standard deduction and Personal exzemption isnt allowed. Preference items are tricky. If you have them odds are you are at the very high end of the scale the AMT affects, or have very low earned income.